Canadian Lawmakers Advance Bill to Prohibit Crypto Donations in Politics

A Canadian bill aimed at prohibiting cryptocurrency donations in politics has moved one step closer to becoming law, gaining cross-party support and facing minimal opposition. The proposed legislation, known as Bill C-25, or 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 bill seeks to classify crypto donations, along with money orders and prepaid payment products, as difficult to trace and therefore subject to prohibition. The ban would be applied uniformly across the federal system, including registered parties, electoral district associations, and candidates. 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 Canada's Chief Electoral Officer recommended stricter regulations on crypto donations in 2022, and later shifted towards advocating for an outright ban due to concerns over pseudo-anonymity and the challenge of verifying contributor identities. This move is in contrast to the stance taken by the U.S., where crypto donations have been permitted since 2014. Similarly, the U.K. recently passed a law banning crypto donations, citing concerns over the potential use of digital assets to conceal the origins of foreign funds in politics.