Canadian Lawmakers Advance Proposed Ban on Cryptocurrency Donations

A proposed law to ban cryptocurrency donations in Canadian politics has moved closer to becoming a reality, gaining cross-party support and passing a crucial vote in Parliament with minimal opposition. The legislation, known as Bill C-25 or the Strong and Free Elections Act, has been referred to a committee for further review after clearing its second reading in the House of Commons. This vote signifies broad agreement among lawmakers with the bill's core principles before it undergoes detailed scrutiny and potential amendments. The law would categorize cryptocurrency, alongside money orders and prepaid payment products, as difficult to trace and thus subject to prohibition. This ban would be comprehensive, applying to all federal entities including registered parties, electoral district associations, candidates, and third parties involved in election advertising. Recipients of such illegal donations would have a 30-day window to return the funds or remit them to the Receiver General. The bill was defended by Kevin Lamoureux, the Liberal parliamentary secretary, who discussed various aspects of the legislation but did not specifically address cryptocurrency in his opening speech. Although several Conservative MPs raised questions about the political financing rules and the application of new restrictions, the issue of cryptocurrency did not become a point of contention. The limited resistance to the crypto ban reflects the minimal use of cryptocurrency in Canadian political donations. Despite being technically allowed since 2019, no major federal party has publicly accepted cryptocurrency donations, and none have been disclosed in recent elections. This move contrasts with the U.S., where cryptocurrency donations have been permitted since 2014, and differs from the U.K., which recently passed a law banning such donations due to concerns over the potential for hiding the origins of foreign money.