Canada Moves Closer to Banning Crypto Donations in Politics

The Canadian government'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 legislation, known as Bill C-25 or the Strong and Free Elections Act, aims to prohibit the use of cryptocurrencies, money orders, and prepaid payment products for political contributions, citing concerns over their traceability. The ban would apply to all federal entities, including registered parties, electoral district associations, candidates, and third-party advertisers. Recipients of such donations would have 30 days to return them or remit them to the Receiver General. The bill's progress comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations in 2024, citing pseudo-anonymity and verification concerns. The move contrasts with the US, which has allowed crypto donations since 2014, but aligns with a recent UK law banning crypto donations in politics.