UK Charity Commission - Accept the crypto donations but keep clean records!

[Flexystar]

This article is associated with the Guidance that was published on the official website of the UK government under the Charity Commission tab. The article isn't about any negative talks or no acceptance of donations in Bitcoin form but it just outlines the proper guideline associated with Bitcoin donations.

In the current timeline, the highest donations that were or are being received are for the cause of Ukraine. Keep in mind how Bitcoin is fragile for money laundering, phishing private keys, scam/ponzi sites with fake addresses of donations, etc. They decided to have this guideline to understand the risks involved and ways to avoid them.

Helen Stephenson, the Commission’s chief executive officer openly stated the risks involved in such donations. It would be also wise to keep up the track records of all crypto donations and file the taxes for the same.

This being said, commission's director also thinks that the Ukraine donation was a grand success in the form of Bitcoins and NFT. This is also true when it comes to English and Wales donation portals. He thinks it may happen that these are some factors that can make investing, trading, and donating in the form of Bitcoin more prompt in the near future. Definitely UK has some spark since few weeks regarding its vision of becoming crypto Hub.

Policy
UK Charities Offered Guidance for Accepting Crypto Donations
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.

UK Charities Offered Guidance for Accepting Crypto Donations

[NotATether]

Sounds important, in case law enforcement issue a warrant to the charity to seize a particular bitcoin donation linked to money laundering. Though I doubt people would try to clean their money on that, when they have the option of buying expensive properties, cars, jewelry, and so on.

UK's not going to become a crypto hub, I don't think. I'd be surprised if they did, as the FCA is shutting down exchanges left and right.

[buwaytress]

UK's not going to become a crypto hub, I don't think. I'd be surprised if they did, as the FCA is shutting down exchanges left and right.

It's more of a crypto hub than a lot of other capitals, though -- where else would you have seen Shiba Inu posters and ads legally plastered all over public transport? If that doesn't say crypto hub, not sure what does. That FCA is looking to crack down on misleading ads is because of the investment risk to the public, I actually think that's a good thing.

FCA is shutting down exchanges who aren't compliant -- that's their job. Exchanges who are compliant (Coinbase comes to mind) started out fairly recently and are operating great. UK is just one of the few countries outside US you can get a crypto credit card from a principal member (again, Coinbase). If that doesn't say crypto hub, not sure what does.

Crypto hubs shouldn't mean lawless hub...

[DaveF]

UK's not going to become a crypto hub, I don't think. I'd be surprised if they did, as the FCA is shutting down exchanges left and right.

It's more of a crypto hub than a lot of other capitals, though -- where else would you have seen Shiba Inu posters and ads legally plastered all over public transport? If that doesn't say crypto hub, not sure what does. That FCA is looking to crack down on misleading ads is because of the investment risk to the public, I actually think that's a good thing.

FCA is shutting down exchanges who aren't compliant -- that's their job. Exchanges who are compliant (Coinbase comes to mind) started out fairly recently and are operating great. UK is just one of the few countries outside US you can get a crypto credit card from a principal member (again, Coinbase). If that doesn't say crypto hub, not sure what does.

Crypto hubs shouldn't mean lawless hub...

But some people want that. They want 0, none, nada, regulation. That is the problem. The more you fight, the harder they come back at you.
Work with them, educate them, fight them on the important matters, help them understand why things are a certain way.

Just screaming money should be free, will never work, and for those who follow history, has never worked.

-Dave

[kryptqnick]

Ukraine chose a pro-crypto stance even before the full-scale war, and the crypto community has been pretty active here as well, I think. But since the end of February 2022, there's been a new wave of endorsement and adoption for the Ukrainian cause. It's both true for well-known non-governmental foundations and for Ukraine as a state accepting Bitcoin (and other crypto) donations. So it's been a great success domestically as well, not just in the UK. In Ukraine, though, I don't think the authorities caution NGOs to weigh the risks of accepting crypto donations, since it's very convenient for international transfers, and since cryptos can be a way to attract donations from new audiences. As for taxation, people in Ukraine (and the authorities) are generally very casual about it, so it's not really an issue. If tax authorities come after a charity or someone gathering money for our army, people will be on the side of those gathering money, and our civil society is stronger than our institutions, so it's just not worth it for the authorities.