Taiwan bans political donations in cryptocurrencies! The Control Yuan: The legislative direction is clear, and online supporters' donations are also being simultaneously suppressed

Taiwan’s Political Donations Law Amendment Draft Has Gone Through 13 Reviews by the Executive Yuan, the Control Yuan Clearly States: Cryptocurrency and Live Streaming “Tips” Are Principally Moving Toward Prohibition.
(Background summary: Taiwan’s special law on cryptocurrencies will be submitted to the Legislative Yuan this session, Peng Jinlong: formal guidelines within six months, two pathways for offshore exchanges to be implemented)
(Additional background: Taiwan’s Executive Yuan releases a comprehensive interpretation of the “Virtual Asset Services Act”! New provisions related to stablecoins added, fraud and manipulation penalties up to 10 years)

With the upcoming nine-in-one elections in Taiwan, can cryptocurrencies and live streaming “tips” be considered political donations or legally accepted? The answer is almost already decided: “Prohibited.”

According to a report by United News Network, Zhao Yongqing, convener of the Control Yuan’s Integrity Committee, and Chen Meiyan, director of the Public Officials’ Asset Declaration Office, held a press conference today (21), reminding candidates to pay close attention to regulations regarding political donations. Any negligence could result in administrative penalties, and serious cases may be referred to prosecutors for investigation.

13 reviews, clear direction: prohibition

Chen Meiyan pointed out at the press conference that while the Ministry of the Interior is the competent authority for the Political Donations Law, the Control Yuan has also participated multiple times in discussions on amendments. The Executive Yuan has conducted 13 reviews of the draft amendments, “There has been ample discussion on whether tips and cryptocurrencies should be included as political donations. In principle, the law is being amended toward prohibition.”

This means that once the law is amended, future acceptance of Bitcoin, Ethereum, and other cryptocurrency donations by candidates, or receiving viewer tips (“tips”) on live streaming platforms, could be considered illegal.

Huang Kuo-chang’s tipping controversy ignites debate

The trigger for this amendment discussion partly stems from a political controversy in February this year. Taiwan People’s Party Chairman Huang Kuo-chang, after stepping down as a legislator, received nearly NT$300k in tips via live streaming within just two days, sparking widespread social attention and bringing the question of whether “tips count as political donations” to the forefront.

At that time, Minister of the Interior Liu Shih-fang stated that tips conducted through online live streaming are difficult to audit and do not meet current legal channels for political donations, effectively declaring such behavior as highly legally risky. The Control Yuan’s press conference this time adds further certainty to this controversy.

Zhao Yongqing also reminded during the meeting that under current regulations, common violations include: establishing political donation accounts without approval from the Control Yuan, exceeding donation limits, accepting donations from mainland China, Hong Kong, and foreign capital, accepting donations from companies with accumulated losses, and donating in others’ names. Both donors and recipients should be cautious.