Canadian Lawmakers Move to Prohibit Cryptocurrency Donations in Politics

A Canadian bill aimed at prohibiting cryptocurrency donations in politics has taken a significant step forward, gaining cross-party support and advancing to the committee stage with minimal opposition. The proposed legislation, known as Bill C-25 or the Strong and Free Elections Act, passed its second reading in the House of Commons and will now undergo further review. This law seeks to restrict crypto donations, alongside other hard-to-trace funding methods like money orders and prepaid payment products. The ban would be applied uniformly across the federal system, affecting registered parties, electoral district associations, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return or remit them to the Receiver General within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended a prohibition on crypto donations due to concerns over pseudo-anonymity and the difficulty in verifying contributor identities. This move contrasts with the stance in the U.S., where crypto donations have been permitted since 2014, and follows a similar ban implemented in the U.K. earlier this year.