Canadian Lawmakers Advance Bill to Prohibit Cryptocurrency Donations in Politics

Canada's proposed ban on cryptocurrency donations in politics has taken a significant step forward, gaining cross-party support and passing the second reading in the House of Commons. The bill, known as the Strong and Free Elections Act, aims to prohibit political contributions made in crypto, citing concerns over the difficulty of tracing the source of these funds. The ban would apply to all federal entities, including registered parties, electoral district associations, and candidates. Recipients of such donations would be required to return them within 30 days or remit them to the Receiver General. The legislation has been sent to committee for further review, with Conservative lawmakers raising questions about the proposed restrictions but ultimately supporting the bill's progression. The lack of opposition to the crypto ban reflects the limited use of cryptocurrency in Canadian politics, despite being technically allowed since 2019. Canada's Chief Electoral Officer has recommended a prohibition on crypto donations, citing concerns over pseudo-anonymity and the difficulty of verifying contributors' identities. This move is in contrast to the US, which has permitted crypto donations since 2014, and follows the UK's recent ban on crypto donations in politics.