Canadian Lawmakers Advance Crypto Donation Ban with Broad Support

A proposed ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, garnering cross-party support and 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 undergo detailed scrutiny and possible amendments in committee. The legislation aims to prohibit political contributions made in cryptocurrency, categorizing them alongside money orders and prepaid payment products as funding methods that are challenging to trace. This ban would apply to all federal entities, including registered parties, electoral district associations, candidates, and third parties involved in election advertising. Recipients of illegal crypto contributions would be required to return or remit them to the Receiver General within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended stricter regulation of crypto donations in 2022, and later advocated for an outright prohibition in 2024, citing concerns over pseudo-anonymity and the difficulty in verifying contributors' identities. Notably, the use of crypto in Canadian politics has been minimal, with no major federal party publicly accepting crypto donations and none being disclosed in recent elections. The move contrasts with the stance in the U.S., where the Federal Election Commission has allowed crypto donations since 2014. Meanwhile, the U.K. has recently passed a law banning crypto donations, driven by concerns over the potential use of digital assets to conceal the origins of foreign funds in British politics.