Ireland plans to ban donations to political parties via cryptocurrencies under new political integrity laws drafted amid concerns over foreign interference in politics.
Protect democratic system
The plan now proposed also addresses rules surrounding foreign non-crypto donations, misinformation and other transparency requirements for political parties. The country fears Russia’s meddling in the country’s upcoming elections.
With the new proposed laws, it wants to further protect its democratic system “given the escalating threat of cyber warfare against free countries.” A newly established electoral commission will monitor compliance with the laws.
It is not known what percentage or amount of money is currently received in political donations that use a crypto for this.
Unfriendly crypto approach
It is not inconceivable to ban crypto-related donations. Several other countries or provinces in countries have already taken a similar measure. For example, the US state of California banned crypto donations in 2018. Since then, a few other states have followed suit.
The Central Bank of Ireland was also primarily known in the past for their unfriendly approach to crypto, most recently in February stating that retail investors were unlikely to approve investment funds with crypto exposure for retail investors, as they have a “high degree of lack of expertise.
Ireland’s central bank also warned consumers about crypto assets the following month, advising them to be aware of “the risks of misleading advertising, particularly on social media, where influencers are paid to advertise crypto assets.”