Catenaa, Monday, March 30, 2026- Canada’s government has introduced legislation to ban cryptocurrency donations to political parties, candidates and third-party advertisers, citing concerns over traceability and election integrity following foreign interference reviews.
Bill C-25, known as the Strong and Free Elections Act, was tabled March 26 by Government House Leader Steven MacKinnon. The proposal would prohibit crypto contributions across federal political entities, including parties, riding associations, leadership and nomination contestants, and third-party campaign groups.
The bill classifies cryptocurrencies alongside money orders and prepaid cards as payment methods that are difficult to trace. Officials say the move follows recommendations from inquiries into foreign interference and guidance from Stéphane Perrault, Canada’s chief electoral officer.
Canada first permitted cryptocurrency donations in 2019 by treating them as non-monetary contributions. However, no such donations were disclosed in the 2021 or 2025 federal elections. The lack of tax incentives and compliance complexity limited their use, while regulators raised concerns about verifying donor identities.
Perrault initially supported tighter disclosure rules in a 2022 report but later shifted toward a full prohibition by late 2024, citing the difficulty of tracing contributors due to pseudonymous transactions.
Under Bill C-25, entities receiving prohibited donations must return, destroy or convert them to the Receiver General within 30 days. Administrative penalties could reach twice the value of the contribution. Maximum fines would rise sharply to CAD $25,000 for individuals and $100,000 for organizations.
The legislation revives elements of Bill C-65, which lapsed after Parliament’s prorogation in January 2025. It has completed first reading but must pass further debate, committee review, the Senate and receive royal assent before becoming law.
The proposal comes amid broader international scrutiny of cryptocurrency in political financing. In the UK, policymakers and lawmakers have raised concerns about illicit finance risks linked to digital asset donations under Prime Minister Keir Starmer, though no formal nationwide ban has been enacted.
The approach contrasts with the United States, where the Federal Election Commission has allowed cryptocurrency donations since 2014. Crypto-backed political groups, including Fairshake, played a growing role in the 2024 election cycle, raising more than $200 million.
Authorities in Canada and other countries are placing increased focus on safeguarding electoral systems from financial channels that are harder to monitor. Officials argue that restricting such methods strengthens transparency and reduces the risk of foreign or anonymous influence in democratic processes.
