Canadian Lawmakers Advance Bill to Prohibit Cryptocurrency Donations in Politics

A Canadian bill aimed at prohibiting cryptocurrency donations in politics has taken a major step forward, garnering cross-party support and minimal opposition. The proposed legislation, known as Bill C-25, or the Strong and Free Elections Act, has passed its second reading in the House of Commons and will now be reviewed by a committee. The bill seeks to ban crypto donations, along with other difficult-to-trace funding methods, such as money orders and prepaid payment products. If enacted, the law would apply to all federal political entities, including parties, electoral district associations, and candidates. Recipients of illegal crypto donations would be required to return or remit them to the government within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations in 2024, citing concerns over pseudo-anonymity and the difficulty of verifying contributor identities. In contrast, the US has permitted crypto donations since 2014, while the UK recently passed a law banning such donations, citing concerns over the potential for hiding foreign money in politics.