Canadian Lawmakers Advance Crypto Donation Ban with Broad Support

A ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, following a parliamentary vote that saw broad cross-party support. The proposed legislation, known as Bill C-25, or the Strong and Free Elections Act, has passed its second reading and will now be reviewed by a committee. The bill aims to prohibit donations made in cryptocurrency, as well as other difficult-to-trace funding methods, such as money orders and prepaid payment products. If enacted, the ban would apply to all federal political entities, including registered parties, electoral district associations, and candidates. Recipients of illegal cryptocurrency donations would be required to return or remit them within 30 days. The legislation's progress comes after Canada's Chief Electoral Officer recommended a prohibition on cryptocurrency donations in 2024, citing concerns over pseudo-anonymity and the difficulty of verifying contributors' identities. The move is in contrast to the United States, where cryptocurrency donations have been permitted since 2014, and the United Kingdom, which recently passed a law banning such donations due to concerns over the potential for hiding foreign money in politics.