Canadian Lawmakers Advance Proposal to Prohibit Cryptocurrency Donations in Politics

A proposed ban on cryptocurrency donations in Canadian politics has moved closer to becoming law, gaining cross-party support with minimal opposition. The Strong and Free Elections Act, also known as Bill C-25, has passed its second reading in the House of Commons and will now undergo further review in committee. The legislation seeks to prohibit crypto donations, along with money orders and prepaid payment products, due to concerns over their traceability. If enacted, the ban would apply to all federal entities, including registered parties, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return or remit them within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended a ban on crypto donations in 2024, citing concerns over pseudo-anonymity and the difficulty in verifying contributors' identities. In contrast, the US has allowed crypto donations since 2014, while the UK recently passed a law banning them due to concerns over hiding the origins of foreign money in politics.