Canada’s federal government has decided to ban cryptocurrency donations to political campaigns, shutting down a fundraising channel that appears to have seen little to no real-world use in the country’s previous elections.
Bill C-25, the Strong and Free Elections Act, introduced on March 26, would ban political contributions made in BTC and other cryptoassets, as well as money orders and prepaid payment products, grouping them as hard-to-trace forms of financing.
The ban applies broadly across the political system, covering registered parties, constituency associations, candidates, leadership and nomination contestants, and third parties engaged in election advertising.
The move comes as the UK government also recently announced an immediate moratorium on cryptocurrency donations to political parties, citing concerns that digital assets could be used to hide the origin of foreign money in UK politics.
Second attempt
Canada’s Bill C-25 addresses a theoretical vulnerability rather than a documented problem.
Canada has allowed crypto donations since 2019 under an administrative framework that classifies them as non-monetary contributions, similar to goods. But no major federal party has publicly embraced crypto, and no contributions have been disclosed in the 2021 or 2025 elections.
As part of 2019, contributions were not eligible for tax receipts, which constitutes a significant obstacle in a system where donors regularly claim credits.
Contributors over $200 were required to be publicly identified by name and address. Only cryptocurrencies with verifiable public blockchains qualify – privacy coins such as Monero or ZCash have been excluded. Candidates had to liquidate their fiat currency holdings before spending.
However, the Chief Electoral Officer (DGE) was increasingly uncomfortable with this arrangement.
In a June 2022 post-election report, the CEO recommended adopting stricter rules for crypto contributions, including eliminating a provision that deemed contributions of $200 or less from non-professional sellers to have zero value, thereby exempting them from the regulated funding regime.
By November 2024, the CEO’s position had shifted from regulating to prohibiting, recommending an outright ban on the grounds that the pseudo-anonymity of cryptocurrency creates transparency issues and that identifying contributors is “fundamentally difficult.”
Bill C-25 is the second attempt to ban crypto donations. Its predecessor, Bill C-65, contained identical provisions, but died when Parliament was prorogued in January 2025.
The new bill gives recipients 30 days to return, destroy or convert and remit any crypto contributions received in violation of the ban, with the proceeds going to the Receiver General. Maximum administrative penalties reach double the value of the incriminated contribution, plus $100,000 for companies.
In the United States, the Federal Election Commission provides guidance on how to properly disclose donations of BTC and other cryptocurrencies to campaigns. Cryptocurrency donations have been permitted in the United States since 2014.
The Canadian bill is currently in first reading in the House of Commons.
