Canadian Lawmakers Advance Bill to Prohibit Cryptocurrency Donations in Politics

A ban on cryptocurrency donations in Canadian politics has moved closer to becoming law, after a bill cleared a crucial vote in Parliament with cross-party support. The proposed legislation, known as Bill C-25, or the Strong and Free Elections Act, aims to prohibit the use of cryptocurrencies, money orders, and prepaid payment products for political contributions, due to concerns that these methods are difficult to track. The ban would apply to all federal political entities, including parties, electoral district associations, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return the funds within 30 days or remit them to the Receiver General. The bill's progress comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations in 2024, citing the pseudo-anonymity of digital assets and the challenges of verifying contributors' identities. The development 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 in politics.