- The federal government has proposed Bill C‑25 to ban crypto donations in political campaigns.
- Canada has allowed cryptocurrency donations since 2019.
Canada’s federal government has introduced a bill to ban cryptocurrency donations in political campaigns, bringing to an end a little-used fundraising option that has raised transparency concerns.
Bill C-25, titled the Strong and Free Elections Act, was tabled in the House of Commons on March 26. The legislation would prohibit political contributions made through digital assets such as Bitcoin, as well as money orders and prepaid cards.
It groups these forms of payment as hard to trace and therefore incompatible with Canada’s electoral transparency rules. The proposed ban extends across the federal political network, covering registered parties, local riding associations, candidates, third‑party advertisers, and leadership or nomination contestants.
It mirrors a similar recent decision by the U.K., which imposed an immediate moratorium on crypto donations over fears of potential foreign interference.
See Related: U.K. Softens Stance On Crypto; Issues Tax Exemption To Foreign Investors
Bill C-25 Follows A Similar Step Taken In The U.K.
This is the second attempt to legislate such a prohibition. A previous bill—C‑65—contained identical measures but lapsed in early 2025 after Parliament was prorogued.
Canada has technically allowed cryptocurrency donations since 2019, classifying them as non‑monetary contributions similar to property. However, no major party has publicly accepted them, and no such donations were disclosed in either the 2021 or 2025 federal elections.
Under the existing framework, crypto donations are not eligible for tax receipts, offering little incentive for donors.
Chief Electoral Officer Stéphane Perrault had initially called for tighter rules but shifted in 2024 to recommending an outright ban. He cited the difficulty of verifying contributor identities and the pseudo‑anonymous nature of cryptocurrency transactions as significant risks to electoral integrity.
Under Bill C‑25, illegal crypto contributions must be returned, destroyed, or converted to fiat within 30 days and sent to the Receiver General. Violations could bring penalties of twice the donation’s value plus fines up to $100,000 for corporations. The bill is currently at first reading in the House of Commons.
