Canadian Lawmakers Advance Proposal to Ban Cryptocurrency Donations in Politics

A proposed ban on cryptocurrency donations in Canadian politics has moved closer to becoming law, gaining cross-party support with minimal opposition. The Strong and Free Elections Act, also known as Bill C-25, has passed its second reading in the House of Commons and will now be reviewed by a committee. This legislation seeks to outlaw crypto donations, along with other hard-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 running election advertisements. Recipients of illegal crypto donations would have 30 days to return the funds or forward them to the Receiver General. 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 contributors' identities. This move is in contrast to the US, which has allowed crypto donations since 2014, and differs from the UK, which recently passed a law banning crypto donations in politics.