The Canadian Liberal government has introduced Bill C-25 to ban crypto donations to parties, candidates, and electoral advertisers.
The Canadian federal government introduced Bill C-25, known as the Strong and Free Elections Act, on March 26, 2026. The measure, presented by House Leader Steven MacKinnon, proposes a ban on cryptocurrency donations to political parties, candidates, riding associations, and third parties engaged in electoral advertising. The bill places crypto on the same level as money orders and prepaid cards, classifying them as payment methods that are difficult to trace.
MacKinnon justified the measure by stating that “these targeted priority amendments address the recommendations of the public inquiry commission on foreign interference in federal electoral processes and democratic institutions, as well as those of the Chief Electoral Officer and the Commissioner of Canada Elections.” Canada had authorized crypto donations in 2019, treating them as non-monetary contributions, similar to material goods. However, no major federal party has ever publicly accepted them, and no crypto donation was declared in either the 2021 or the 2025 elections.
Canada’s Chief Electoral Officer, Stéphane Perrault, had initially favored stricter regulation rather than an outright ban. In a post-election report from June 2022, he had recommended that all crypto contributions be received and reported regardless of value, eliminating a provision that assigned zero value to donations below 200 Canadian dollars from non-commercial vendors. By November 2024, his position had evolved toward calling for a complete prohibition, on the grounds that the pseudonymous nature of crypto makes identifying contributors “fundamentally difficult.”
Bill C-25 is the second attempt to introduce this ban. Its predecessor, Bill C-65, contained identical provisions but lapsed when Parliament was prorogued in January 2025. The new bill has completed its first reading and must still go through further readings, committee review, Senate approval, and royal assent before becoming law. The proposed penalties are severe: recipients of crypto donations in violation of the ban will have 30 days to return, destroy, or convert the funds and remit them to the Receiver General. Administrative penalties may reach twice the value of the contribution received.
The bill also introduces a general increase in maximum fines: penalties for individuals will rise from 1,500 to 25,000 Canadian dollars, while those for organizations will increase from 5,000 to 100,000 Canadian dollars. The timing is significant: Canada introduced Bill C-25 just one day after British Prime Minister Keir Starmer announced a moratorium on crypto donations to political parties in the United Kingdom, citing risks related to illicit finance and foreign interference. A cross-party parliamentary committee had called for an immediate ban in mid-March, describing crypto donations as an “unacceptably high risk.”
The coordinated moves by Canada and the United Kingdom highlight a growing divergence with the United States, where the Federal Election Commission has permitted crypto donations since 2014 and industry-linked super PACs have become a decisive force in American politics. During the 2024 electoral cycle, the crypto sector spent over 190 million dollars through vehicles such as Fairshake, which became the largest super PAC of the cycle with over 200 million dollars raised. In the US, no federal ban on cryptocurrency donations exists, although several states have introduced restrictions at the local level.
