Canadian Lawmakers Advance Proposal to Prohibit Crypto Donations in Politics

A proposed law in Canada that would outlaw crypto donations in politics has moved one step closer to being enacted, having garnered cross-party support and encountering 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 proceed to a committee for further examination. This legislation seeks to prohibit contributions made in cryptocurrency, categorizing them alongside money orders and prepaid payment products as difficult to track. The ban would be applied across the federal system, affecting registered parties, electoral district associations, candidates, and third parties involved in election advertising. Recipients of such contributions would be required to return them within 30 days or remit them to the Receiver General. The bill was defended by Kevin Lamoureux, who highlighted issues such as AI deepfakes and foreign interference but did not address crypto directly in his opening speech. While some Conservative lawmakers questioned the proposed restrictions, the issue of crypto donations did not become a central point of contention. The lack of resistance may be attributed to the limited use of crypto in Canadian politics, as no major federal party has publicly accepted crypto donations since they were technically allowed in 2019. This move contrasts with the U.S., where crypto donations have been permitted since 2014, and follows the U.K.'s recent decision to ban crypto donations due to concerns over the potential use of digital assets to conceal the origins of foreign funds in politics.