Following the lead of the United Kingdom, the Canadian federal government has introduced Bill C-25, also known as the Strong and Free Elections Act. Introduced on March 26, 2026, the legislation seeks to prohibit political donations made via cryptocurrency, money orders, and prepaid cards, citing risks to electoral integrity.
The bill targets pseudo-anonymous funding sources that are difficult to trace. If passed, it would apply to registered political parties, riding associations, candidates, nomination contestants, and third-party election advertisers. Recipients of illegal crypto contributions would have 30 days to return or remit the funds to the receiver general. Penalties for non-compliance are steep, reaching up to twice the contribution’s value plus $100,000 for corporations.
While Canada has technically permitted crypto donations since 2019, they were treated as non-monetary in-kind contributions and were ineligible for tax receipts. Despite this framework, the medium saw virtually no adoption; no major federal party reported crypto contributions during the 2021 or 2025 elections. Canada’s Chief Electoral Officer initially recommended tighter regulations but shifted to a total ban in late 2024.
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The justification rests on the fundamental difficulty of verifying contributor identities, which poses a theoretical risk of foreign interference, a concern echoed by the U.K.’s recent moratorium on digital asset donations.
This legislative push comes amid a volatile period for digital assets. As of late March 2026, major tokens showed modest gains, with Bitcoin at $66,296.23, Ethereum at $1,993.15, and Solana at $81.45. While the U.S. continues to allow crypto donations under FEC guidance, Canada’s Bill C-25, a reintroduction of the failed Bill C-65, signals a tightening North American regulatory landscape focused on financial transparency.
