Canadian Lawmakers Advance Bill to Prohibit Crypto Donations in Politics

A ban on cryptocurrency donations in Canadian politics has taken a significant step towards becoming law, following a parliamentary vote that showed cross-party support and minimal opposition. The proposed legislation, known as Bill C-25, aims to prohibit the use of cryptocurrencies, money orders, and prepaid payment products for political contributions, citing concerns over their potential to facilitate untraceable funding. The bill, which applies to all federal political entities, including parties, candidates, and third-party advertisers, would require recipients of illegal crypto donations to return or remit them to the Receiver General within 30 days. The legislation's progress comes after Canada's Chief Electoral Officer recommended stricter regulations on crypto donations in 2022, and later advocated for an outright ban in 2024, citing the pseudo-anonymity of digital assets and the challenges of verifying contributors' identities. In contrast to the US, which has permitted crypto donations since 2014, Canada is moving towards a ban, similar to the UK, which recently passed a law prohibiting crypto donations in politics.