Canadian Lawmakers Advance Proposal to Ban Cryptocurrency Donations in Politics

A ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, gaining cross-party support and minimal opposition in Parliament. 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 scrutiny in committee. This bill aims to restrict political contributions made via crypto, alongside other difficult-to-trace funding methods like money orders and prepaid payment products. The ban would apply universally across the federal system, including registered parties, electoral district associations, candidates, and third parties involved in election advertising. Recipients of illegal crypto contributions would have 30 days to return or remit these funds to the Receiver General. The bill's progression comes after its lead defender highlighted concerns over AI deepfakes, foreign interference, and administrative penalties, but did not specifically address crypto. Conservative lawmakers, whose party leader has been crypto-friendly, raised questions about the new restrictions but did not strongly oppose the bill. The limited resistance may be attributed to the minimal use of crypto in Canadian politics, despite its technical allowance since 2019. This move contrasts with the U.S., where crypto donations have been permitted since 2014, and follows the U.K.'s recent ban on crypto donations due to concerns over the potential for hiding foreign money origins.