Nonprofits need to weigh up the risk of volatility and hacks, and follow money laundering norms, the Charity Commission said.
English and Welsh charities accepting crypto donations should keep accurate records and comply with tax and money-laundering rules, the Charity Commission said in guidance published Wednesday.
The regulator warned charities that assets such as bitcoin (BTC) or non-fungible tokens (NFT) can be volatile, prone to hacks and hard to trace – and that they’ll need to weigh up whether it’s worth accepting them at all.
“Our guidance stresses the risks involved in the use of cryptocurrency, and advises trustees to exercise caution,” Helen Stephenson, the Commission’s chief executive officer, said in a speech also given Wednesday.
In a July 2022 blog, the Commission’s Assistant Director of Policy Sam Jackson said that crypto could become a “more mainstream route to investing, trading, and moving assets,” citing fundraising successes using digital assets in Ukraine, and the U.K.’s own goal to become a crypto hub.
The Commission, responsible for registering and monitoring nonprofits in England and Wales, in January said it was probing the Effective Ventures Foundation, which had received significant backing from Sam Bankman-Fried and his exchange, FTX, which filed for bankruptcy in November.
Disclaimer: CryptoNewsBook is an online aggregator that fetches latest crypto news from different sources. This article is provided for general information purposes ONLY and contains data fetched from third party sources; hence, we do not endorse its accuracy. For more details, kindly visit The Source. Please report any fake news or false statement to Our Support Team. If you are the original owner of this content and wish it to be removed on this platform, kindly forward your request to Our Support Team.
Also Note: Cryptocurrencies are unregulated, and no part of this article should be understood nor interpreted as a recommendation/advice. #s5
