Canada Bans Cryptocurrency Donations Amid Financial Crime Crackdown

Canada's Strong and Free Elections Act has been tabled by Government House Leader Steven MacKinnon, introducing legislation that would prohibit cryptocurrency donations to political parties, candidates, and third-party election advertisers.

The bill, which classifies crypto alongside money orders and prepaid cards as difficult to trace payment methods, aims to address concerns over the anonymity of cryptocurrency transactions. This move is part of a broader crackdown on financial crime in the country, with Canada's watchdog revoking 47 crypto-related money services businesses (MSBs) registrations since the start of the year for anti-money laundering violations.

The restrictions would apply to registered parties, riding associations, candidates, leadership and nomination contestants, and third-party election advertisers. Recipients of banned crypto donations would have 30 days to return, destroy, or convert and return the coins to the Receiver General. Administrative penalties could reach up to twice the donation's value.