Canadian Lawmakers Advance Proposal to Ban Crypto Donations in Politics

A Canadian bill aiming to outlaw cryptocurrency donations in politics has moved closer to becoming law, garnering cross-party support 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 undergo further review by a committee. This law would categorize crypto donations, along with money orders and prepaid payment products, as difficult to trace and thus subject to prohibition. The ban would be comprehensive, applying to all federal political entities, including parties, electoral district associations, candidates, and third-party advertisers. Should the law be enacted, recipients of illegal crypto donations would be required to return or remit these funds within 30 days. The bill's progression comes after the Canadian Chief Electoral Officer recommended stricter regulations on crypto donations in 2022, later advocating for an outright ban due to concerns over the pseudo-anonymity of contributors and the challenges in verifying their identities. This development stands in contrast to the U.S., where crypto donations have been permitted since 2014, and follows the U.K.'s recent decision to ban such donations over concerns about hiding the origins of foreign money in politics.