Canadian Lawmakers Advance Bill to Prohibit Crypto Donations in Politics

Canada is one step closer to banning cryptocurrency donations in politics after a bill aimed at prohibiting such contributions cleared a key vote with cross-party support. The proposed legislation, known as Bill C-25 or the Strong and Free Elections Act, was passed in its second reading in the House of Commons and will now proceed to a committee for further examination. This bill seeks to outlaw donations made in cryptocurrency, categorizing them alongside money orders and prepaid payment products as difficult to trace. The ban, if implemented, would apply universally across Canada's federal political landscape, affecting registered parties, electoral district associations, candidates, and third-party advertisers. Recipients of illegal crypto donations would have a 30-day window to return these funds or remit them to the Canadian equivalent of the U.S. Treasury. The bill's progression comes with minimal opposition, reflective of the limited use of cryptocurrency in Canadian political financing. Despite being technically allowed since 2019, no major federal party has publicly accepted crypto donations, and none have been disclosed in recent elections. This move contrasts with the U.S., where crypto donations to political campaigns have been permitted since 2014. The Canadian initiative aligns more closely with the U.K.'s recent decision to ban crypto donations due to concerns over the potential for digital assets to obscure the origins of foreign funds in politics.