Cryptocurrency political donations banned under new Canada bill
Officials cite traceability issues and foreign interference risks linked to pseudo-anonymous digital assets as key reasons for restricting crypto donations.
Canada’s Liberal government has introduced Bill C-25 to prohibit cryptocurrency and other non-cash instruments from being used as political donations. The measure covers all registered parties, candidates, leadership, and nomination contests, and third-party advertisers, tightening campaign finance rules.
The proposal reverses a 2019 framework that had allowed limited crypto contributions under strict conditions, though uptake remained minimal and no major party reported receiving such donations in recent federal elections.
Authorities argue that pseudo-anonymous blockchain transactions make it difficult to verify the true source of funds, raising concerns about traceability and foreign interference risks.
Under the new rules, any prohibited donation must be returned, destroyed, or converted and forwarded to the Receiver General within 30 days. Enforcement includes fines of up to twice the illegal contribution’s value, reaching CA$25,000 for individuals and CA$100,000 for corporations.
Bill C-25 also revives provisions from the earlier Bill C-65, which collapsed in 2025 after Parliament was prorogued. The updated law aligns with UK restrictions and expands election oversight powers, including measures against deepfakes and foreign interference.
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