Canada Moves to Ban Cryptocurrency Donations in Federal Political Fundraising
By Ayesha Aziz | CoinMarketCap Crypto News | April 2026
In a significant move aimed at safeguarding electoral integrity, Canada’s federal government introduced legislation on March 26 that would ban the use of cryptocurrency for political fundraising across all levels of the federal political system. Known as the Strong and Free Elections Act or Bill C-25, the bill seeks to prohibit political donations made via digital assets, citing concerns over traceability and the potential for foreign interference.
Legislation Details and Scope
Bill C-25 classifies cryptocurrencies alongside other less traceable funding sources such as money orders and prepaid payment cards, all of which would be barred from political contributions due to their potential for anonymity and difficulty in verification. The ban would cover contributions to registered political parties, riding associations, candidates, leadership and nomination contestants, as well as third parties engaged in election advertising.
Steven MacKinnon, Canada’s government House leader and the bill’s sponsor, emphasized the primary motivation behind the legislation: preventing foreign interference in Canadian elections. On social media platform X (formerly Twitter), MacKinnon stated, "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."
Background: Cryptocurrency Donations in Canada
Canada has permitted cryptocurrency donations since 2019, treating them as non-monetary contributions akin to property. Under the previous framework, digital contributions above $200 required public disclosure of the donor’s name and address. However, only cryptocurrencies with publicly verifiable blockchains qualified, effectively excluding privacy-focused coins such as Monero and Zcash. Additionally, recipients were mandated to convert any crypto holdings into Canadian dollars prior to expenditure. These donations were not eligible for tax receipts, reducing the incentive for political giving through digital assets.
Despite these provisions, no major federal party in Canada has publicly accepted cryptocurrency donations. There were no reported crypto contributions disclosed during the 2021 and 2025 federal elections, implying the bill is intended to mitigate a theoretical risk rather than address widespread misuse.
Evolving Government and Electoral Oversight Perspectives
The stance on crypto donations has evolved over time, particularly influenced by the Chief Electoral Officer Stephane Perrault. A 2022 post-election report called for tighter regulations, aiming to eliminate loopholes such as attributing zero value to minor contributions from non-professional sellers. By November 2024, Perrault had recommended a complete ban on crypto donations, emphasizing the challenges posed by crypto’s pseudo-anonymity and the difficulties associated with verifying donor identities.
Bill C-25 is effectively a reintroduction of Bill C-65, which contained identical provisions but stalled when Parliament was prorogued in January 2025. Having now passed its first reading in the House of Commons, Bill C-25 faces further readings, committee scrutiny, and Senate approval before it can be signed into law by the Governor General.
Implementation and Penalties
Should Bill C-25 become law, recipients of prohibited cryptocurrency donations would be required to return, destroy, or remit the funds to the Receiver General within 30 days. Violations could trigger penalties up to twice the value of the contribution, with fines reaching $25,000 for individuals and $100,000 for corporations.
International Context and Additional Provisions
Canada’s move coincides with similar measures abroad. On the same day, the United Kingdom announced a moratorium on political donations made in cryptocurrencies, following an independent review that highlighted risks of digital assets being used to conceal foreign money in national politics. Contrastingly, the United States has allowed crypto donations since 2014, with the Federal Election Commission issuing guidelines on their disclosure and use.
Beyond cryptocurrency regulations, Bill C-25 also proposes expanding current rules against realistic deepfake content impersonating electoral candidates. This provision gained particular attention following the 2024 U.S. elections, during which fabricated audio clips purportedly featuring then-President Joe Biden sought to influence voter turnout.
Conclusion
Canada’s proposed ban on cryptocurrency donations through Bill C-25 reflects growing global concerns about the integrity of democratic processes in the digital age. While the use of crypto in Canadian political fundraising has not been widespread, lawmakers and electoral officials remain cautious about potential vulnerabilities, emphasizing transparency and security in election financing.
Disclaimer: This article includes links to third-party sources for informational purposes. CoinMarketCap is not responsible for the content or updates on external sites. Readers should conduct their own research and consult professional advice before making decisions related to cryptocurrencies or political donations.
About the Author:
Ayesha Aziz is a crypto writer and environmental scientist specializing in blockchain technology and regulatory developments.
Subscribe to CoinMarketCap’s free newsletter for daily crypto updates and exclusive insights.