The new law, which will take effect in 60 days, was passed after the state’s Fair Political Practices Commission approved the new requirement, the LA Times reported on July 21.
According to the new law, candidates can receive crypto donations if they can convert the digital assets into fiat immediately.
Focus on KYC
The law stipulates that that candidate must work with a registered cryptocurrency processor to handle the transaction. The processor must also perform essential Know Your Customer (KYC) practices like collecting the contributor’s name, address, occupation, and employer.
Previously, the state had prohibited crypto contribution alongside other eight states. Notable states that allow political crypto donations include Washington D.C.