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Canada’s proposed ban on cryptocurrency political donations has moved a step closer to becoming law as it moves through Parliament with little opposition.
Bill C-25, the “Strong and Free Elections Act,” passed second reading in Canada’s House of Commons and was referred to committee for further review.
The vote signals that lawmakers in the Canadian capital of Ottawa broadly agree with the legislation’s principles.
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The Bill now faces more detailed scrutiny from cross-party lawmakers and possible amendments before a final vote that would make it the law of the land in Canada.
The legislation would prohibit political contributions made in crypto, along with money orders and prepaid payment products, grouping them as funding methods that are hard to trace.
The ban would apply across Canada’s federal system and include registered political parties, electoral district associations, candidates, leadership and nomination contestants.
The government of Prime Minister Mark Carney has expressed concerns about crypto’s association with foreign influence in elections.
The broad support for the ban on crypto political donations comes with digital assets having played a limited role in Canadian politics.
Canada has allowed cryptocurrency political donations since 2019, when Elections Canada classified them as non-cash, in-kind contributions similar to property.
But, to date, no major political party has publicly accepted crypto, and no contributions have been disclosed in recent elections.
The neighbouring U.S. is moving in the opposite direction of Canada.
The Federal Election Commission in the U.S. has allowed cryptocurrency donations in American electoral campaigns since 2014.
Earlier this year, the United Kingdom passed a law similar to Canada’s that bans cryptocurrency donations, citing concerns that digital assets could be used to hide the origins of foreign money in British election campaigns and politics.
Bitcoin (CRYPTO: $BTC) is currently trading at $76,800 U.S.