Cryptocurrency becoming a loophole for political donations? Taiwan Control Yuan: Considering regulating cryptocurrency political contributions

In Taiwan, the transparency and supervision issues related to political donations have become a hot topic of discussion. Secretary-General Lee Chun-yi of the Control Yuan responded directly to Legislator Jiang Yongchang's inquiry regarding the possibility of using cryptocurrency as political donations. At this turning point, the Control Yuan plans to collaborate with the Executive Yuan to promote amendments to relevant laws. This initiative aims to prevent election candidates from accepting opaque funding sources through cryptocurrency and ensure the integrity of asset declarations, thereby strengthening the supervision mechanism for political funds in Taiwan.

Legislator Jiang Yongchang: Will Candidates Receiving Cryptocurrency Donations Be Regarded as Political Contributions?

Upon the first report by the Secretary-General of the Control Yuan, Lee Chun-yi, Legislator Jiang Yongchang inquired whether receiving donations through "live streaming donations" would be considered political contributions, in order to supervise politicians who raise funds through live streaming. Additionally, he raised the question of whether donations made in "cryptocurrency" would also be considered political contributions.

Legislator Jiang Yongchang mentioned that although the Control Yuan stated that virtual assets cannot be used as political contributions, there is no legal basis for this claim. Despite the initiation of legislative amendments, with the presidential election looming, how should donations made in virtual assets be regulated?

Control Yuan Officials: Virtual Assets Not Classified as Political Contributions under the Law

Control Yuan officials stated that the anonymity and decentralization of virtual assets currently do not meet the transparency requirements of the Political Donations Act, making it difficult to ascertain the source of funds and comply with the declaration requirement of "depositing into a special account within fifteen days." If candidates use cold wallets, it would be impossible to verify.

Legislator Jiang Yongchang suggested that if the reason for not considering virtual assets as political contributions is due to the difficulty in identifying the source of funds, then donations made through "live streaming donations" and "cryptocurrency" should be treated equally, as in the case of live streaming donations, there are also third-party payment operators and platforms from both domestic and international sources.

Legislator Jiang Yongchang: How to Supervise Candidates?

As public office candidates in Taiwan are not allowed to accept political donations from domestic or foreign sources, Legislator Jiang Yongchang believes that if virtual assets are not considered political contributions, then candidates would not need to disclose the source of virtual asset political donations received before their election, creating a loophole.

Declaration of Virtual Currency Included in Public Servants' Asset Declaration

Secretary-General of the Control Yuan, Lee Chun-yi, reported the Control Yuan's legislative plans for the first time at the Judicial and Legal Committee of the Legislative Yuan on 11/8. Lee Chun-yi proposed that to enhance transparency, the Control Yuan suggested in February to include virtual currency in the scope of asset declaration for public officials, and the relevant declaration forms were revised by the Ministry of Justice in June.

Declaration of Virtual Currency and Regulatory Compliance with the Political Donations Act

In the report, Lee Chun-yi emphasized the societal expectations of the "Sunshine Four Laws" and specifically mentioned the position of virtual currency in the asset declaration law. He pointed out that in addition to asset declaration, whether virtual currency should be considered a legitimate object of political contributions is also a topic that requires further discussion. The Control Yuan will continue to communicate with the Ministry of Justice, Ministry of the Interior, and other relevant authorities to achieve clearer legal regulations.