Canadian Lawmakers Advance Proposal to Ban Cryptocurrency Donations in Politics

Canada has moved closer to enforcing a ban on cryptocurrency donations in politics, following the advancement of Bill C-25 through Parliament with broad cross-party support. The proposed legislation, known as the Strong and Free Elections Act, passed its second reading in the House of Commons and will now undergo further review in committee. This bill seeks to restrict political contributions made in cryptocurrency, categorizing them alongside money orders and prepaid payment products as difficult to trace. The ban, if implemented, would apply to all federal entities, including registered parties, electoral district associations, candidates, and third-party advertisers. Recipients of such contributions would be required to return them within 30 days or remit them to the Receiver General. The bill's progression comes after the Chief Electoral Officer recommended stricter regulations on crypto donations in 2022, and later advocated for an outright ban in 2024, citing concerns over pseudo-anonymity and the challenge of verifying contributor identities. Notably, the use of cryptocurrency in Canadian politics has been minimal, with no major federal party publicly accepting crypto donations since they were technically allowed in 2019.