Canadian Lawmakers Advance Proposed Ban on Crypto Donations

Canada has moved one step closer to outlawing cryptocurrency donations in politics, as a proposed law gained cross-party support and progressed through Parliament with minimal opposition. The Strong and Free Elections Act, also known as Bill C-25, was approved at second reading and will now undergo further review in committee. This proposed legislation seeks to prohibit crypto donations, alongside other difficult-to-trace funding methods like money orders and prepaid payment products. If passed, the ban would apply to all federal entities, including registered parties, electoral district associations, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return or remit the funds within 30 days. The bill's progression comes despite concerns from some Conservative lawmakers, who questioned the proposed restrictions on political financing. However, crypto donations have been rarely used in Canadian politics, and no major federal party has publicly accepted them. The proposed ban is in line with recommendations from Canada's Chief Electoral Officer, who cited the pseudo-anonymity and difficulty of verifying contributor identities associated with crypto donations. This move contrasts with the approach taken in the U.S., where crypto donations have been permitted since 2014. The U.K. recently passed a law banning crypto donations, citing concerns over the potential for hiding foreign money in British politics.