Canada introduced Bill C-25 prohibiting cryptocurrency donations to political parties, candidates, and third-party advertisers across the federal election system.
The ban addresses what government officials describe as a transparency concern, though no cryptocurrency political contributions have been publicly reported since Canada permitted them in 2019.
The Strong and Free Elections Act groups cryptocurrency with money orders and prepaid payment products as funding methods "difficult to trace."
Maximum penalties reach twice the contribution value, plus $100,000 for corporate violations.
Shift From Regulation to Prohibition
Canada's Chief Electoral Officer initially recommended tighter regulation following the 2022 federal election.
By November 2024, the office reversed course and called for an outright ban, citing cryptocurrency's pseudo-anonymity and "fundamentally difficult" contributor identification.
The administrative framework established in 2019 classified cryptocurrency donations as non-monetary contributions similar to property. Acceptable contributions required public blockchain verification, excluding privacy coins like Monero (XMR) and ZCash (ZEC), and mandated liquidation to fiat currency before spending.
Recipients have 30 days to return, destroy, or convert prohibited contributions received after the ban takes effect, with proceeds forwarded to the Receiver General.
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Second Legislative Attempt, International Context
Bill C-25 reintroduces provisions from Bill C-65, which died when Parliament prorogued in January 2025. The legislation is currently at first reading in the House of Commons.
The United Kingdom implemented a cryptocurrency donation moratorium in March 2026, citing foreign interference concerns. The U.S. Federal Election Commission has permitted cryptocurrency political contributions since 2014 and provides disclosure guidance for campaigns receiving digital assets.
Neither major Canadian political party accepted cryptocurrency donations in the 2021 federal election, and no crypto contributions have been publicly disclosed for campaigns operating under the 2019 framework.
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