- Canada’s bill C-25 proposes bans of crypto donations and similar methods due to traceability and identity verification concerns.
- Law applies to parties, candidates, and third parties, with strict penalties and enforcement measures.
- Shift follows rising transparency concerns, moving from regulation to full prohibition of crypto donations.
Canada has introduced new legislation to ban cryptocurrency donations in federal politics, marking a shift in election financing rules. Bill C-25, tabled on March 26 in the House of Commons, seeks to prohibit crypto contributions due to traceability concerns. The proposal follows warnings from election authorities about risks tied to anonymous funding methods.
Bill Targets Multiple Payment Methods
Bill C-25, known as the Strong and Free Elections Act, expands beyond cryptocurrencies. It also bans donations made through money orders and prepaid payment cards. Lawmakers grouped these methods due to challenges in tracking the source of funds.
The restrictions apply across the political system. Registered parties, candidates, leadership contestants, and third-party advertisers all fall under the proposed ban. Additionally, the bill outlines enforcement measures for violations.
Recipients must return, destroy, or convert prohibited contributions within 30 days. They must then transfer proceeds to the Receiver General. Penalties include fines up to twice the contribution value, plus $100,000 for corporations.
Shift From Regulation to Prohibition
Canada previously allowed cryptocurrency donations under a 2019 administrative framework. Authorities classified them as non-monetary contributions, similar to property. However, usage remained minimal in practice.
No major federal party disclosed crypto donations during the 2021 or 2025 elections. Moreover, these contributions did not qualify for tax credits, limiting their appeal. Donors contributing over $200 also had to provide identification details.
Despite these safeguards, concerns increased over time. According to election reports, identity verification remained difficult due to crypto’s pseudo-anonymous nature. This concern drove calls for stricter controls.
Election Officials Raise Transparency Concerns
Chief Electoral Officer Stéphane Perrault initially supported tighter regulation. However, by November 2024, he recommended a complete ban. He cited persistent challenges in verifying contributor identities.
Bill C-25 represents the second attempt to enforce such a prohibition. Its predecessor, Bill C-65, failed after Parliament dissolved in January 2025. Meanwhile, similar concerns have emerged internationally.Notably, the United Kingdom recently imposed a moratorium on crypto political donations. In contrast, the United States continues to permit such contributions under disclosure rules. Canada’s proposal remains under review at first reading.