Canadian Parliament Advances Bill to Prohibit Crypto Donations in Politics

A ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, as the proposed legislation has received cross-party support and encountered minimal opposition in Parliament. The bill, known as the Strong and Free Elections Act, has passed its second reading in the House of Commons and will now undergo further review by a committee. This legislation aims to prohibit political contributions made using cryptocurrencies, as well as money orders and prepaid payment products, due to concerns that these funding methods are difficult to track. The ban would apply to all federal political entities, including registered parties, electoral district associations, candidates, and third-party advertisers. Recipients of such donations 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 the pseudo-anonymity of digital assets and the challenges of verifying contributor identities. The move is in contrast to the United States, where crypto donations have been permitted since 2014, and differs from the UK's recent decision to ban crypto donations due to concerns about hiding the origins of foreign funds in politics.