Financial

What You Need to Know about the Process of Handling Budgets for a Political Project?

Budget control is one of the most important responsibilities for any type of organization. In the political sphere, budgets are especially critical given that so many projects are paid for through donations and grants.

To ensure that money is being spent responsibly, organizations have to have a system in place to monitor costs and expenditures. With so much at stake, mishandling budgets can be disastrous for an organization. That’s why it’s important to understand how budgets work in a political project before diving in head first.

Understanding the Political Project Budget Process

Budgets for political projects are not one-size-fits-all. Rather, organizations need to create a budget that aligns with their specific project needs. In other words, it’s not enough to create a general budget that covers every expense.

Rather, you’ll want to break down and categorize all planned expenses by type. The best way to create a budget is to make a list of all planned expenses. Note that this list should include all project-related costs, including salaries, travel, office supplies, event space, etc.

Communicating with Stakeholders

A budget can help an organization understand the financial resources required for a project. It can also be an effective tool for communicating with stakeholders.

Whether you’re working with donors, foundations, or sponsors, a budget can help you make a strong case for funding. Budgets also help stakeholders understand how their money will be used. For example, if you’re working with individual donors, you can show them exactly where their money is going.

Once the budget has been approved and the project has begun, you’ll need to keep stakeholders updated on progress and any deviations from the original budget. This way, everyone is on the same page and can keep track of how the project is progressing.

Identifying Costs and Resources

Once you’ve created a budget, you’ll need to regularly review it to make sure that you’re staying within the financial limits. A budget will outline the expected cost of every single item on the project’s to-do list. You can do this by using a budgeting app like Quicken if you want to try different apps.

Finance of Politics

How Regulating Cryptocurrencies Makes the Market Confident

Crypto Typewriter

 

The regulation of cryptocurrency trading is handled differently worldwide with regard to fraud or terrorist financing. This presents both opportunities and risks. The EU is guided by the Fifth Anti-Money Laundering Directive. This ensures trust in the market.

Cryptocurrencies, just like blockchain, are currently being hotly debated in the field of digitization. Numerous studies and experts are of the opinion that these digital currencies will establish themselves in the next few years. The crypto world has already undergone an enormous change in recent years. Since crypto became mainstream, there has been many crypto wallets that raised such as MetaMask (compare other cyrpto wallets vs MetaMask here). At the time of its introduction, the principle was based primarily on anonymity. However, the numerous attempts at fraud and terrorist financing forced the legislators to adopt new regulations. The crypto market itself has also had to adapt to Know Your Customer (KYC) regulations and implement policies to properly screen its users.

EU rules are based on AMLD5

The regulations and laws for dealing with cryptocurrency vary from country to country. The European Union is now increasingly following the AMLD5 (Anti Money Laundering Directive 5). It sets out how money laundering and terrorist financing are to be combated. The current version includes, among other things, a new view of cryptocurrencies, in which the associated exchanges are subject to the same obligations as classic financial institutions. Trading venues must therefore adhere to due diligence and implement KYC processes and AML requirements. They also have to register with national supervisory authorities – in Germany, for example, with Bafin.

While the EU is guided by AMLD5, many markets in Asia and the USA have so far only been partially regulated – or even not at all. China, however, announced a ban on trading cryptocurrencies earlier this year. Brazil, on the other hand, wants to introduce Bitcoin as legal tender just like El Salvador. In the Middle East, Binance – one of the largest crypto trading platforms – has received the first official crypto asset license from regulators in Bahrain and the United Arab Emirates.

Against this background, a significant difference between the states is the respective implementation and processing time. While a corresponding trading license can be issued in the UAE within a few weeks or months, it takes a lot longer via the Bafin in Germany. Nevertheless, Coincube classifies Germany as the most crypto-friendly country, as German banks are increasingly looking for ways to trade crypto assets.

Trust in crypto trading is the be-all and end-all

For a good market position in cryptocurrency trading, trust is essential. Therefore, Europe and Germany pay attention to the implementation of the legal regulations – with a positive effect, as has been shown in the past. For example, companies can rule out identity theft at an early stage and confirm the legitimacy of the business relationship.

However, digital KYC and AML processes bring with them a certain complexity. Users must be identified according to official regulations of the supervisory authorities. Accordingly, the identity document must be compared with a photo or video as well as additional personal information.

There are now officially tested identification procedures, such as video or AI-based solutions, that meet these security requirements. This makes it easier for companies to integrate corresponding methods into their processes. Exactly this procedure is also suitable when trading cryptocurrencies to prevent fraud.

 

ALSO READ: How Cryptocurrency Investing Made Spain Teens Gamble Away Their Future

 

KYC enables centralization

Traditional finance is centralized and regulations are very local. However, this is different in the crypto market: traders do not have to carry out their KYC processes via a central point. Decentralized finance (DeFi) plays an essential role here. It enables direct interaction with digital products and services – without intermediaries. So-called DeFi protocols support identity providers in KYC processes and help to identify the owner of a crypto wallet. The verified wallets are included in a so-called whitelist and are then considered trustworthy.

Conclusion

For regulations in the crypto market, trust and a harmonized environment are essential. Standardized procedures and guidelines can help here. This also creates greater confidence in the security of the trading venues for the end customer – for example through the AMLD5 in the European market. However, there will certainly be more guidelines and innovations in the field of cryptocurrencies. Companies and retailers should therefore constantly follow the current developments.

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