Canadian Lawmakers Advance Proposal to Prohibit Cryptocurrency Donations in Politics

A proposed law to ban cryptocurrency donations in Canadian politics has moved closer to being enacted, after gaining cross-party support and passing a crucial vote in Parliament. The Strong and Free Elections Act, also known as Bill C-25, has been referred to a committee for further review after clearing its second reading in the House of Commons. This legislation seeks to prohibit crypto donations, along with other difficult-to-trace funding methods like money orders and prepaid payment products. The ban would be applied across the federal system, including registered parties, candidates, and third parties involved in election advertising. Recipients of such donations would be required to return them within 30 days or remit them to the Receiver General. The bill's progression comes after Canada's Chief Electoral Officer recommended stricter regulations on crypto donations, citing concerns over their pseudo-anonymity and the challenges in verifying contributors' identities. This move is in contrast to the United States, 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 hiding the origins of foreign money in politics.