The Charity Commission has issued new guidance for English and Welsh charities that accept cryptocurrency donations. The regulator has advised nonprofits to keep accurate records and adhere to tax and money-laundering regulations. However, the Commission also cautioned that cryptocurrencies such as Bitcoin and non-fungible tokens (NFTs) can be volatile and susceptible to hacks, and charities must assess the risks involved before accepting them.
The chief executive officer of the Charity Commission, Helen Stephenson, stressed that trustees should be cautious when dealing with digital assets. In a July 2022 blog, the Commission’s Assistant Director of Policy suggested that cryptocurrencies could become a more mainstream way of investing, trading, and moving assets. However, the Commission has also investigated the Effective Ventures Foundation, a charity that received significant backing from Sam Bankman-Fried and his exchange FTX, which filed for bankruptcy in November.
