Canadian Lawmakers Advance Bill to Prohibit Cryptocurrency Donations in Politics

A Canadian bill aimed at banning cryptocurrency donations in politics has taken a significant step towards becoming law, garnering 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 review in committee. This bill seeks to prohibit political contributions made in cryptocurrency, categorizing them alongside money orders and prepaid payment products as difficult to trace. The ban would be applied across the federal system, including registered parties, electoral district associations, candidates, and third parties involved in election advertising. Recipients of such contributions would have 30 days to return them 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, a complete prohibition in 2024, citing concerns over pseudo-anonymity and the challenge of verifying contributors' identities. This move contrasts with the stance in the U.S., where crypto donations have been permitted since 2014. The UK recently passed a similar law banning crypto donations, citing concerns over the potential use of digital assets to conceal the origins of foreign funds in politics.