Canadian Lawmakers Move Closer to Banning Crypto Donations in Politics

Canada's proposed legislation to prohibit cryptocurrency donations in politics has taken a significant step forward, gaining cross-party support and proceeding to the committee stage with minimal opposition. The Strong and Free Elections Act, also known as Bill C-25, aims to restrict difficult-to-trace funding methods, including crypto, money orders, and prepaid payment products. If enacted, the ban would apply to all federal entities, including registered parties, electoral district associations, and candidates. Recipients of illegal crypto donations would be required to return or remit the funds within 30 days. The bill's progress comes after Canada's Chief Electoral Officer recommended a ban on crypto donations in 2024, citing concerns over pseudo-anonymity and the challenges of verifying contributor identities. The development contrasts with the US, where crypto donations have been permitted since 2014, and follows the UK's recent decision to ban crypto donations in politics.