Canadian Lawmakers Advance Proposal to Prohibit Crypto Donations in Politics

A proposed law to ban cryptocurrency donations in Canadian politics has taken a significant step forward, gaining cross-party support and passing its second reading in the House of Commons. The bill, known as the Strong and Free Elections Act, will now proceed to a committee for further review. This legislation seeks to prohibit crypto donations, along with other difficult-to-trace funding methods, in federal elections. The ban would apply to all parties, candidates, and third-party advertisers, with recipients required to return any illegal donations within 30 days. The move towards this ban comes after Canada's Chief Electoral Officer recommended stricter regulation of crypto donations in 2022, and later shifted towards an outright prohibition due to concerns over pseudo-anonymity and verification of contributor identities. This development is in contrast to the United States, where crypto donations have been permitted since 2014, and differs from the UK's recent decision to ban crypto donations in politics.