Canada Proposes Ban on Crypto Political Donations

Canada’s federal government has introduced legislation that would ban cryptocurrency donations across its political system. The proposal comes as part of a broader election reform bill targeting foreign interference risks. If passed, it would formally close a fundraising channel that has seen almost no use since being allowed in 2019.

Canada moves to eliminate crypto from political funding

The proposed law, known as Bill C-25 or the Strong and Free Elections Act, was introduced on March 26 by Government House Leader Steven MacKinnon.

The bill would prohibit crypto donations to political parties, candidates, riding associations, leadership contestants, and third-party advertisers. It also groups cryptocurrency alongside money orders and prepaid cards, arguing these payment methods are difficult to trace.

According to MacKinnon, the changes respond directly to recommendations from inquiries into foreign interference, as well as guidance from Canada’s election authorities. In his words, shared by Radio Canada International (RCI) in a report:

“These targeted priority amendments address recommendations from the public inquiry into foreign interference in federal electoral process and democratic institutions, and also from the chief electoral officer and the commissioner of Canada elections.”

Crypto donations were first permitted in 2019 under a framework that treated them as non-monetary contributions. However, adoption has been effectively nonexistent. No major party publicly accepted crypto, and no such donations were disclosed in either the 2021 or 2025 federal elections.

Traceability concerns drive policy shift

Canada’s Chief Electoral Officer Stéphane Perrault initially supported stricter reporting rules rather than a ban.

In a 2022 report, his office recommended closing loopholes that allowed small crypto donations to go unreported. But by late 2024, that stance shifted toward full prohibition, citing the difficulty of verifying contributors due to crypto’s pseudonymous nature.

Bill C-25 is not the first attempt at such a ban. A previous version, Bill C-65, failed to pass before Parliament was prorogued in early 2025.

The new proposal also introduces significantly tougher penalties. Recipients of prohibited crypto donations would have 30 days to return, destroy, or transfer the funds to the government. Administrative fines could reach up to twice the value of the contribution.

More broadly, maximum penalties would rise sharply. Individual fines would increase to CAD $25,000 (around $18,000 USD), and organizations could face penalties of up to CAD $100,000 (nearly $72,000 USD).

The bill has completed its first reading and must still pass multiple legislative stages before becoming law.