Canadian Lawmakers Advance Bill to Prohibit Cryptocurrency Donations in Politics

A Canadian bill aimed at prohibiting cryptocurrency donations in politics has made significant progress, gaining cross-party support and moving forward with 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 be reviewed by a committee. This bill seeks to classify cryptocurrency donations alongside money orders and prepaid payment products as difficult to trace, thereby prohibiting their use in political funding. The ban would apply to all federal entities, including registered parties, electoral district associations, and candidates. Recipients of illegal cryptocurrency donations would be required to return or remit them within 30 days. The legislation's progression comes after Canada's Chief Electoral Officer recommended stricter regulations on cryptocurrency donations in 2022, and later advocated for an outright ban in 2024, citing concerns over the pseudo-anonymity of digital assets and the challenges in verifying contributors' identities. This move contrasts with the approach taken in the United States, where cryptocurrency donations have been permitted since 2014.