Canadian Lawmakers Advance Bill to Prohibit Crypto Donations in Politics

A ban on cryptocurrency donations in Canadian politics has moved closer to becoming law after gaining cross-party support in Parliament. The proposed legislation, known as Bill C-25, or the Strong and Free Elections Act, has passed its second reading in the House of Commons and will now be reviewed by a committee. The bill aims to prohibit political contributions made in cryptocurrencies, along with other difficult-to-trace funding methods such as money orders and prepaid payment products. If passed, the ban would apply to all federal political entities, including parties, candidates, and third-party advertisers. Recipients of illegal crypto donations would be required to return or remit the funds within 30 days. The legislation has garnered support from the Conservative party, despite some lawmakers expressing concerns about the proposed restrictions. The issue of cryptocurrency donations has not been a major point of contention, largely due to the limited use of crypto in Canadian politics. In fact, no major federal party has publicly accepted cryptocurrency donations, and none have been disclosed in recent elections. The move to ban crypto donations in Canada contrasts with the approach taken in the US, where cryptocurrency donations have been permitted since 2014. Meanwhile, the UK has also recently passed a law banning crypto donations, citing concerns about the potential for digital assets to be used to conceal the origins of foreign funds in politics.