Canadian Lawmakers Move Forward with Proposed Ban on Cryptocurrency Donations

Canada's bid to outlaw cryptocurrency donations in politics has taken a significant step forward, garnering cross-party support as it progresses through Parliament. The proposed legislation, known as Bill C-25 or the Strong and Free Elections Act, has cleared its second reading and will now undergo further review in committee. This development signals that lawmakers broadly agree with the bill's core principles, paving the way for detailed scrutiny and potential amendments. The legislation seeks to ban crypto donations, categorizing them alongside money orders and prepaid payment products as difficult to trace. This prohibition would apply universally across the federal system, including registered parties, electoral district associations, candidates, and third parties involved in election advertising. 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 its lead defender, Kevin Lamoureux, emphasized aspects such as AI deepfakes and foreign interference, without directly addressing cryptocurrency. Conservative MPs, whose party leader Pierre Poilievre has been crypto-friendly, raised questions about the new restrictions but did not make them a central point of contention. The lack of significant resistance may reflect the minimal use of crypto in Canadian politics, despite its technical legality since 2019. This move contrasts with the U.S., where crypto donations have been permitted since 2014, and follows the U.K.'s recent decision to ban such donations due to concerns over the origins of foreign money.