Canadian Lawmakers Advance Bill to Prohibit Cryptocurrency Donations in Politics

A Canadian bill that aims to ban cryptocurrency donations in politics has taken a significant step forward, garnering support from lawmakers across parties. 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 seeks to prohibit political contributions made in cryptocurrency, citing concerns over the difficulty of tracing the source of such funds. If enacted, the law would apply to all federal political entities, including registered parties, electoral district associations, and candidates. Recipients of illegal cryptocurrency contributions would be required to return or remit the funds within 30 days. The bill's progression comes after Canada's Chief Electoral Officer recommended a ban on cryptocurrency donations in 2024, citing the potential for pseudo-anonymity and the challenge of verifying contributor identities. The move is in contrast to the United States, where cryptocurrency donations have been permitted since 2014. The UK recently passed a similar law banning cryptocurrency donations in politics, citing concerns over the potential for hiding foreign money origins.