Canada Moves to Ban Crypto Donations in Federal Elections

Canada's federal government has introduced legislation that would make it illegal to donate cryptocurrency to political campaigns, marking a significant shift in how digital assets are treated under the country's election financing laws. Bill C-25, known as the Strong and Free Elections Act and tabled on March 26, groups Bitcoin and other crypto assets alongside money orders and prepaid payment products as funding instruments that are difficult to trace and verify.

The prohibition covers the full spectrum of political entities, including registered parties, riding associations, individual candidates, leadership hopefuls, nomination contestants, and third parties running election advertising. Violators face penalties of up to twice the value of the offending contribution, plus an additional $100,000 fine for corporations. Recipients would have 30 days to return, destroy, or liquidate any prohibited donations, with proceeds forwarded to the federal Receiver General.

Despite the attention the bill has drawn, crypto political donations have never meaningfully taken hold in Canada. Although a regulatory framework permitting them has existed since 2019, no major federal party has publicly accepted cryptocurrency, and no contributions were disclosed in either the 2021 or 2025 federal elections. The existing rules already imposed strict conditions, including public identification of donors giving more than $200, mandatory liquidation into fiat currency before spending, and a ban on privacy-focused coins like Monero and ZCash.

The push for an outright ban gained momentum after Canada's Chief Electoral Officer, who initially advocated for tighter regulation in 2022, recommended full prohibition by November 2024, citing the inherent difficulty of confirming donor identities through blockchain-based transactions. This bill is actually the second attempt at enacting such a ban, following an earlier version that lapsed when Parliament was prorogued in January 2025. Canada's move also aligns with a recent United Kingdom decision to impose an immediate moratorium on crypto political donations over concerns about foreign funding. The bill is currently at first reading in the House of Commons.