Canadian Lawmakers Advance Bill to Prohibit Crypto Donations in Politics

A ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, gaining cross-party support as it passed the second reading in the House of Commons. The proposed legislation, known as Bill C-25 or the Strong and Free Elections Act, aims to prohibit political contributions made in cryptocurrencies due to their difficulty in being traced. This ban would be applied across the federal system, including registered parties, electoral district associations, and candidates, and would require recipients to return any illegal crypto contributions within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations in 2024, citing concerns over pseudo-anonymity and the challenge of verifying contributors' identities. The move is in contrast to the United States, which has permitted crypto donations since 2014, but aligns with the UK's recent decision to ban such donations due to concerns over hiding the origins of foreign money in politics.