Canadian Lawmakers Advance Bill to Prohibit Crypto Donations in Politics

A proposed ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, garnering cross-party support and minimal opposition in Parliament. 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. The legislation aims to prohibit political contributions made in cryptocurrency, citing concerns over the difficulty in tracing the source of such funds. This ban would apply to all federal entities, including registered parties, electoral district associations, and candidates. Recipients of illegal crypto donations would be required to return or remit the funds within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended stricter regulations on crypto donations in 2022, and later advocated for an outright ban in 2024, citing pseudo-anonymity and verification issues. The move is in contrast to the US, where crypto donations have been permitted since 2014, and differs from the UK, which recently passed a law banning crypto donations due to concerns over foreign money in politics.