Canada moves to ban crypto donations for election campaigns following UK

Canada's federal government introduced Bill C-25, the Strong and Free Elections Act, to prohibit cryptocurrency and other hard-to-trace donations like money orders to political campaigns, registered parties, candidates, and third parties. This action follows the UK's recent moratorium on crypto donations, driven by concerns over hiding the origins of foreign money. Although crypto donations have been permitted in Canada since 2019 under rules classifying them as non-monetary contributions (which excluded tax receipts and required liquidation to fiat), the Chief Electoral Officer (CEO) shifted from recommending regulation to outright prohibition by late 2024, citing fundamental difficulties in ensuring contributor identification due to crypto's pseudo-anonymity. The bill addresses a theoretical vulnerability, as no major federal party has publicly accepted crypto in past elections. Bill C-25, which is the second attempt after a previous bill died, sets penalties up to twice the contribution value plus $100,000 for corporations for violations.

(Source：CoinDesk)