With the Canadian General Election scheduled for later this year, Elections Canada, the body responsible for overseeing federal political fundraising, is polling the relevant parties on the question of whether campaign contributions could be allowed in Bitcoin or other cryptocurrencies.
Elections Canada have posted online that “with interest in cryptocurrency on the rise, political entities have requested guidance on accepting contributions and conducting other transactions in Bitcoin or altcoins”. This indicates that a change in the way donations are normally conducted may well be on the agenda, given the rise in Bitcoin’s popularity in the country.
With the relevant political parties being asked to forward their view before 21 January, there is time left. Elections Canada terms cryptocurrency donations as non-monetary, in-kind contributions, claiming:
“Like money, they can be used to make purchases from businesses that choose to accept them. But unlike money, they cannot be placed directly into a bank account. Instead, cryptocurrencies can be sold for traditional currencies that can be placed into a bank account.”
This, according to Elections Canada, puts cryptocurrencies more on a par with stocks and bonds which the body regards as “a form of property”, thereby making them a non-monetary contribution.
For its part, the draft note provided by the body takes the position that cryptocurrency donations are non-monetary, in-kind contributions. It points out this correlation to other authorities such as Elections BC (British Columbia) and the US Federal Election Commission, as well as the Canada Revenue Agency.
This would mean that such offerings would be acceptable providing that cryptocurrency donations follow the same guidelines as set for other non-monetary contributions, exempting them from tax receipts.
Currently, none of Canada‘s major political parties currently offers the option for crypto donations and to date, no party has responded to the Elections Canada request.
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