Canada Moves Closer to Banning Crypto Donations in Politics

A ban on cryptocurrency donations in Canadian politics has taken a significant step forward after receiving cross-party support. 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 proceed to a committee for further review. This bill aims to restrict political contributions made in crypto, along with other difficult-to-trace funding methods like money orders and prepaid payment products. The ban would be applied across the federal system, including registered parties, electoral district associations, and candidates. Recipients of illegal crypto contributions would be required to return them within 30 days or remit them to the Receiver General. The legislation's progress comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations due to concerns over pseudo-anonymity and the difficulty in verifying contributors' identities. This move is in contrast to the United States, which has permitted crypto donations since 2014, and differs from the UK, which recently passed a law banning crypto donations to prevent the use of digital assets to conceal the origins of foreign money in politics.