Canada’s federal government has moved 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 March 26, would ban political contributions made in BTC and other cryptoassets, as well as in money orders and prepaid payment products, grouping them as hard-to-trace forms of financing.
The ban applies broadly across the political system and covers registered parties, riding associations, candidates, leaders and nomination participants and third parties involved 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 origins 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 classified them as non-monetary contributions, similar to property. But no major federal party has publicly accepted crypto, and no contributions have been disclosed in either the 2021 or 2025 elections.
Under the 2019 framework, contributions were not eligible for tax revenue, a significant obstacle in a system where donors routinely claim credits.
Contributors of more than $200 had to be publicly identified by name and address. Only cryptocurrencies with verifiable public blockchains qualified – privacy coins like Monero or ZCash were excluded. Candidates had to liquidate holdings to fiat before spending.
Still, the Chief Electoral Officer (CEO) grew increasingly uncomfortable with the arrangement.
In a post-election report in June 2022, the CEO recommended adopting tighter rules on crypto contributions, including removing a provision that deemed contributions of $200 or less from non-professional sellers to have zero value, effectively exempting them from the regulated finance scheme.
By November 2024, the CEO’s position had shifted from regulating to banning, recommending an outright ban on the grounds that cryptocurrency’s pseudo-anonymity creates transparency challenges and that identifying contributors is “fundamentally difficult.”
Bill C-25 is the second attempt to introduce a ban on crypto donation. 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 forwarded to the recipient general. The maximum administrative penalties reach twice the value of the offending contribution, plus $100,000 for corporations.
In the US, the Federal Election Commission provides guidance on how to properly disclose BTC and other crypto donations to campaigns. Crypto donations have been allowed in the US since 2014.
Canada’s bill is currently on first reading in the House of Commons.
