The Canadian government has introduced legislation aimed at prohibiting cryptocurrency donations to political campaigns, a move that comes after years of warnings about potential risks to electoral integrity. Bill C-25, known as the Strong and Free Elections Act, was presented on March 26 and seeks to eliminate a fundraising avenue that has seen minimal use in past elections.
This new bill categorizes cryptocurrency contributions, including Bitcoin and other digital assets, as difficult to trace, similar to money orders and prepaid payment products. The ban applies to all facets of the political landscape, affecting registered parties, riding associations, candidates, and third-party entities involved in election advertising.
Canada’s decision aligns with recent actions taken by the U.K. government, which has also imposed a moratorium on cryptocurrency donations to political parties, citing concerns over the potential for foreign money to influence British politics.
While Canada has allowed cryptocurrency donations since 2019 under a framework that treated them as non-monetary contributions, no major federal party has accepted such donations publicly. Furthermore, no cryptocurrency contributions were reported in the 2021 or 2025 elections.
The existing framework did not provide tax receipts for crypto donations, which deterred many potential contributors. Additionally, any donations exceeding $200 required disclosure of the contributor’s name and address. Only cryptocurrencies with public blockchains were eligible, excluding privacy-focused coins like Monero or ZCash. Candidates were also required to convert any crypto holdings into fiat currency before utilizing them.
Concerns regarding this arrangement prompted the Chief Electoral Officer (CEO) to recommend stricter regulations in a post-election report from June 2022. The CEO initially suggested tightening rules around crypto contributions but shifted to advocating for a complete ban by November 2024, citing the challenges of maintaining transparency due to the pseudo-anonymity of cryptocurrencies.
Bill C-25 marks the second attempt to implement a ban on crypto donations, following the failure of Bill C-65, which contained similar provisions but was halted when Parliament was prorogued in January 2025. Under the new bill, recipients of illegal crypto contributions will have 30 days to return, destroy, or convert these funds, with penalties for non-compliance reaching double the value of the contribution, plus a potential fine of $100,000 for corporations.
In contrast, the United States has permitted cryptocurrency donations since 2014, with the Federal Election Commission providing guidelines for their disclosure.
As the bill progresses, it is currently undergoing its first reading in the House of Commons, where it will be debated further.
Canada's federal government has introduced Bill C-25 to ban cryptocurrency donations to political campaigns, responding to concerns about electoral integrity. This legislation follows years of warnings from election officials and reflects a growing trend among countries to regulate the use of digital assets in political fundraising.