The Canadian government has moved to formally ban political donations made in crypto.
Filed March 26 as part of Bill C-25, the amendment to the Canada Elections Act aims to permanently close potential channels for untraceable foreign funding.
Canada Proposes Severe Penalties Up to $100,000 for Defaulters
The legislation prohibits cryptocurrency contributions for partisan activities, advertising, and election surveys. The ban is also being extended to money orders and prepaid payment products due to traceability concerns.
“No chief agent of a registered party, financial agent of a registered association, official agent of a candidate or financial agent of a nomination contestant or leadership contestant shall accept a contribution that is in the form of [digital assets],” the filing stated.
The ban blankets the entire political ecosystem, including parties, associations, candidates, leadership campaigns, and third parties.
Under the new rules, political agents must return any cryptocurrency donation to the contributor or destroy the asset within 30 days.
If the assets cannot be returned, third parties are required to liquidate them into fiat currency and surrender the funds to the chief electoral officer, who will then forward the amount to the Receiver General for Canada.
The penalties for noncompliance are severe. Violators who knowingly accept crypto donations face fines reaching twice the value of the offending contribution. Corporations involved in these activities face an even stiffer penalty: an automatic $100,000 fine in addition to the double-value penalty.
Meanwhile, Canada’s policy shift is not occurring in a vacuum. The legislation closely mirrors a recent UK government move to ban cryptocurrency donations to political parties.
These countries’ moves stand in stark contrast to the United States, where the crypto lobby has entirely financialized the political landscape.
The US crypto industry has already deployed over $273 million to influence the outcome of the forthcoming midterm elections, according to data tracked by Follow The Crypto.
Crypto Donations for US Elections. Source: Follow The Crypto
The divergence highlights a fundamental difference in political mechanics. In the US, crypto heavyweights like Coinbase and the Fairshake super PAC are using their corporate war chests to run sophisticated ad campaigns backing pro-crypto candidates.
If passed, Bill C-25 ensures Canada’s electoral system will remain firmly insulated from the digital asset arms race currently defining its southern neighbor.
Read original story Canada Moves to Shut Crypto Out of Election Financing by Oluwapelumi Adejumo at beincrypto.com
