Canada Moves Closer to Banning Crypto Donations in Politics

A ban on cryptocurrency donations in Canadian politics has taken a significant step forward, with the proposed legislation passing its second reading in the House of Commons. The bill, known as the Strong and Free Elections Act, aims to restrict the use of crypto, money orders, and prepaid payment products for political contributions, citing difficulties in tracing their origins. The ban would apply to all federal political entities, including registered parties, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return or remit them to the authorities within 30 days. The legislation has received cross-party support, with the Conservative party raising questions but ultimately backing the bill's progression to committee. The limited opposition to the crypto ban reflects the relatively rare use of cryptocurrency in Canadian politics, with no major federal party having publicly accepted crypto donations in recent elections. The 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, where crypto donations have been permitted since 2014, and differs from the UK, which recently passed a law banning crypto donations due to concerns over foreign money in politics.