Canada’s federal government wants cryptocurrency out of its political fundraising system entirely, and it is making a second run at doing so.
Bill C-25, formally titled the Strong and Free Elections Act, was introduced March 26 by Government House Leader Steven MacKinnon. The legislation would ban cryptocurrency donations to political parties, candidates, and third-party election advertisers, grouping crypto alongside money orders and prepaid cards as payment methods considered difficult to trace.
The bill covers a wide swath of the political apparatus. Under the proposed law, political contributions in the form of cryptocurrency, money orders, and prepaid payment products would be strictly forbidden for all partisan activities, advertising and election-related polling. That essentially means no corner of the federal political system would be permitted to accept digital asset donations if the legislation passes.
MacKinnon framed the move in national security terms. “With the introduction of the Strong and Free Elections Act, new investments to counter foreign threats and stronger government coordination, we are acting to ensure our elections remain free, fair and secure at all times,” he said in a statement posted to X.
What makes this legislation somewhat unusual is the problem it’s trying to solve has not yet presented itself, at least not in any documented form. No major Canadian federal party has ever publicly accepted crypto contributions, and no crypto donations were disclosed in either the 2021 or 2025 federal elections. Canada first allowed crypto donations in 2019, classifying them as non-monetary contributions, similar to property. But uptake was essentially zero.
A pre-emptive legislation to keep crypto out
Part of that came down to incentives. Contributions were not eligible for tax receipts, a significant disincentive in a system where donors routinely claim credits. Contributors donating more than $200 also had to be publicly identified, and only cryptocurrencies with verifiable public blockchains qualified, privacy coins like Monero or ZCash were already excluded.
Still, Canada’s Chief Electoral Officer Stéphane Perrault grew increasingly uneasy with even the theoretical exposure. In a June 2022 post-election report, his office recommended tighter regulation of crypto contributions.
By November 2024, that position had shifted from regulation to a full ban, with Perrault stating that contributor identification is “fundamentally difficult” and pointing to cryptocurrency’s pseudo-anonymity as a core transparency challenge.
This isn’t the first time Parliament has tried to push through such a ban. Bill C-25’s predecessor, Bill C-65, contained identical provisions but died when Parliament was prorogued in January 2025. The new bill is essentially a reintroduction, though it now arrives in a notably different global context.
A Widening Divide Between Allies on Digital Money in Politics
Canada introduced Bill C-25 just one day after the U.K. Prime Minister Keir Starmer announced a moratorium on crypto donations to British political parties, citing risks around illegal finance and foreign interference.
The near-simultaneous moves by two of the world’s most influential democratic economies suggest something of a coordinated, or at least parallel, shift in how Western governments are thinking about digital money and electoral integrity.
The contrast with the United States is quite stark. The Federal Election Commission has offered guidance on disclosing Bitcoin and other crypto contributions since 2014, and donations to political campaigns remain permitted in the U.S. American elections have in recent cycles seen significant crypto-linked political spending, a dynamic that appears to be pushing some foreign governments in the opposite direction.
If Bill C-25 does pass, the consequences for violations would be meaningful. Political groups would need to return, destroy or transfer prohibited contributions to the chief electoral officer within 30 days. Proposed penalties include fines of up to twice the amount donated, plus $25,000 for individuals and $100,000 for corporations.
Beyond the crypto provisions, the bill also introduces the expansion of existing bans on realistic deepfakes that impersonate electoral candidates to mislead voters, a nod to the growing concern around AI-generated disinformation in elections.
To become law, the bill must progress through several readings and a committee stage in the House of Commons, then pass through the Senate before reaching the Governor General for royal assent. Given that its predecessor never made it past a second reading, the road ahead is far from guaranteed.
But with a federal election cycle approaching and pressure from allies mounting, the Canadian government appears more determined this time to close the door on crypto in politics, whether or not anyone was actually walking through it.