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Canada Follows UK in Banning Crypto Donations for Political Campaigns

Canada's federal government has taken a significant step by moving to ban cryptocurrency donations for political campaigns.

This decision comes on the heels of the UK's similar announcement, aimed at curtailing potential financial loopholes in political funding.

The proposed Bill C-25, known as the Strong and Free Elections Act, seeks to prohibit contributions in Bitcoin and other cryptocurrencies, citing concerns about the traceability of such funds.

While crypto donations were permitted in Canada since 2019, there has been minimal interest from major political parties.

Notably, no federal party disclosed accepting these donations in the 2021 or 2025 elections, largely due to regulatory disincentives.

Under current frameworks, only cryptocurrencies with transparent public blockchains were eligible, and contributors of over $200 had to disclose their identities.

However, the Chief Electoral Officer expressed growing unease about the difficulties in tracking crypto contributions, leading to the recommendation for an outright ban.

Bill C-25 is designed to require any political recipient of crypto donations to return or destroy the funds, facing severe penalties for non-compliance.

As Canada progresses with this legislation, it contrasts sharply with rules in the U.S., where crypto donations have been accepted since 2014 under regulated frameworks.

The bill is currently in its initial reading in the House of Commons, signifying a notable shift in Canada's approach to crypto-financing in political contexts.