Canadian Lawmakers Advance Bill Banning Crypto Donations in Politics

A proposed ban on cryptocurrency donations in Canadian politics has moved closer to becoming law, after a bill passed a crucial vote in Parliament with cross-party support. The legislation, known as Bill C-25, aims to prohibit crypto donations, along with money orders and prepaid payment products, due to concerns that these funding methods are difficult to trace. The ban would apply to all federal political entities, including parties, candidates, and third-party advertisers. If the bill becomes law, recipients of illegal crypto donations would have 30 days to return the funds or forward them to the Canadian government. The bill's progress comes despite some Conservative lawmakers raising questions about the proposed restrictions, although crypto did not become a major point of contention. The limited opposition to the crypto ban reflects the fact that cryptocurrency donations have been rarely used in Canadian politics, with no major party publicly accepting them and no contributions disclosed in recent elections. The Canadian government's move to ban crypto donations contrasts with the approach in the US, where crypto donations have been permitted since 2014. Meanwhile, the UK has also recently passed a law banning crypto donations, citing concerns about the potential for digital assets to be used to hide the origins of foreign money in politics.