Canada Proposes Ban on Crypto Political Donations to Curb Foreign Interference

Canada has proposed a federal ban on crypto political donations as part of a wider election security bill, after officials warned about foreign interference and hard to trace funding channels. Bill C 25, introduced on March 26, would bar political actors and third parties from accepting contributions made in cryptoassets, money orders, or prepaid payment products. The bill has not passed yet.

The proposal sits inside the Strong and Free Elections Act, a bill the government says is meant to strengthen Canada’s federal election rules against evolving threats. Ottawa presented it as part of a broader package to protect democracy and tighten political finance rules.

The text says third parties would not be allowed to accept contributions for partisan activity, election advertising, or election surveys if the contribution comes in the form of a cryptoasset. It defines a cryptoasset as a digital asset protected by cryptographic measures. The same ban would also apply to money orders and prepaid payment products.

The restrictions would also cover registered parties, riding associations, candidates, nomination contestants, and leadership contestants. Under the bill, their financial agents or official agents could not accept contributions in those forms either. That means the proposed ban reaches across much of Canada’s federal political system, not only outside advocacy groups.

The government linked the bill to concerns about election integrity and foreign interference. In its March 26 release, Ottawa said the changes respond to recommendations from the Public Inquiry into Foreign Interference, the Chief Electoral Officer, and the Commissioner of Canada Elections.

That link appears more directly in Elections Canada’s own recommendations. In a February 11 paper on threats to the electoral process, Chief Electoral Officer Stéphane Perrault called for a ban on contributions made in cryptocurrency or other untraceable instruments. The recommendation formed part of a broader push to close gaps that could be used to hide the origin of political money.

The bill also includes a return rule. If a third party or political entity receives one of the banned contributions, it would have 30 days after becoming aware of it to return it or otherwise dispose of it under the rules in the bill. For now, the measure remains a proposal and must move through Parliament before becoming law.