Canadian Lawmakers Advance Proposal to Prohibit Crypto Donations in Politics

A proposed law to ban cryptocurrency donations in Canadian politics has taken a significant step forward, gaining cross-party support and advancing through Parliament with minimal opposition. The legislation, known as Bill C-25 or the Strong and Free Elections Act, has passed its second reading in the House of Commons and will now be reviewed by a committee. This vote signifies that lawmakers generally agree with the bill's core principles, which include prohibiting political contributions made in cryptocurrency due to their difficulty in being traced. 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 donations would have 30 days to return them 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 discuss cryptocurrency. Although several Conservative Members of Parliament raised questions about the restrictions, the issue did not become a major point of contention. The limited resistance to the crypto ban reflects the minimal use of cryptocurrency in Canadian politics, despite its technical allowance since 2019. The move contrasts with the U.S., where crypto donations have been permitted since 2014, and follows the U.K.'s recent ban on such donations due to concerns over the origins of foreign money.