Canadian Lawmakers Advance Proposal to Prohibit Cryptocurrency Donations in Politics

A proposed law to ban cryptocurrency donations in Canadian politics has taken a significant step forward, gaining cross-party support and progressing through Parliament with minimal opposition. The Strong and Free Elections Act, also known as Bill C-25, has passed its second reading in the House of Commons and will now undergo further review by a committee. This legislation seeks to prohibit political contributions made in cryptocurrency, categorizing them alongside money orders and prepaid payment products as difficult to trace. The ban would be applied across the federal system, including registered parties, electoral district associations, and third-party advertisers. Recipients of illegal crypto contributions would be required to return or remit them within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended a ban on crypto donations in 2024, citing concerns over pseudo-anonymity and the difficulty in verifying contributors' identities. This move is in contrast to the United States, which has permitted crypto donations since 2014, and differs from the UK, which recently passed a law banning crypto donations due to concerns over hiding the origins of foreign money in politics.