- South Korea’s ruling party DPK announced crypto-based political finance platform
- Bitcoin, Ethereum, and some other altcoins can be used for donations
- The DPK said the decision was approved by the country’s National Election Commission
The Democratic Party of Korea (DPK), the ruling party in South Korea, is preparing to launch the world’s first cryptocurrency-based political donation platform with receipts issued in the form of non-fungible tokens ( NFT).
The project is the brainchild of Lee Kwang-Jaewe, a Member of Parliament (MP) of the DPK. The representative and his office confirmed that the political donation platform is expected to launch in mid-January 2022.
“We are currently in the process of selecting a national holding company to partner with. We will disclose the address and details of the portfolio on our official blog, Facebook and YouTube channels in early January,” Yonhap news agency said. . reported.
Starting this month, the DPK will send non-interchangeable digital images to supporters of the lawmaker, who in turn will donate money for his election candidacy. Lee’s office said NFTs will serve as a sort of link that allows holders to trade digital assets with others.
The project is “experimental” at this point, but the politician’s team has revealed that it will cap individual crypto donations at $ 840. In addition to Bitcoin and Ethereum, the party plans to select two or three altcoins.
These coins will most likely come from a pool of large cap coins listed by domestic companies. “This is a time when innovative experiments are needed to change the perception of virtual assets and NFTs across the political spectrum and to increase our understanding of future technologies,” Yonhap said quoting the MP.
Regarding the country’s legal framework for political financing, which is guided by the Political Funds Law or the Civil Servants Elections Law, the legislator confirmed that the National Election Commission (NEC) has already noted that the fundraising using the NFT does not violate these laws.
“For the past eight months, we have discussed this issue with the NEC and other government institutions,” Representative Lee said. noted.
“The donations will be managed in accordance with the law on the elections of civil servants and the guidelines on the management of political funds,” he added. The lawmaker’s team also assured the public that they would provide updates on how fiat KRW tax deductions could be applied to this type of donation, as political donations are tax deductible under southern law. -Korean.
It should be noted that this is not the first time that a politician has received political donations in the form of cryptocurrency. In the United States, Republican Senator Cynthia Lummis had previously accepted the policy donations in cryptocurrency through crypto payment providers.