Svmuu News: The Canadian government proposed the "Strong and Free Elections Act" (Bill C-25) on March 26, aiming to prohibit the use of crypto assets like Bitcoin for political campaign donations. It classifies crypto assets alongside money orders and prepaid payment instruments as "difficult-to-trace" funding sources. This ban applies to the entire political system, including registered political parties, candidates, campaign teams, and third-party election advertisers. This move follows the UK's recent announcement to suspend cryptocurrency political donations, citing the need to prevent foreign funds from flowing into the political system via crypto assets. If passed, illegally received crypto donations must be returned or disposed of within 30 days, with penalties reaching up to twice the illegal amount plus a maximum fine of $100,000. The bill has currently entered its first reading in Parliament.
It is worth noting that Canada has allowed crypto donations since 2019, but actual usage has been minimal, with no donation records disclosed during the 2021 and 2025 general elections. Regulators have long been concerned that the "pseudo-anonymity" of crypto assets could affect election transparency, ultimately leading to a shift towards a comprehensive ban. (CoinDesk)