Canadian Lawmakers Advance Proposal to Ban Crypto Donations in Politics

A proposed law in Canada that would ban cryptocurrency donations in politics has moved closer to being enacted, following a successful second reading in the House of Commons. The legislation, known as Bill C-25, or the Strong and Free Elections Act, has received cross-party support and will now undergo further review in committee. The bill seeks to prohibit the use of crypto, money orders, and prepaid payment products for political contributions, citing concerns over the difficulty in tracing the origin of these funds. If passed, the ban would apply to all federal political entities, including parties, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return the funds within 30 days. The legislation's progression comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations in 2024, citing the potential for pseudo-anonymity and the challenge of verifying contributor identities. This move is in contrast to the United States, where crypto donations have been permitted since 2014. The UK has also recently passed a law banning crypto donations in politics, citing similar concerns over the potential for hiding the origins of foreign money.