Canada advances crypto donation ban: plans to block crypto political funding channels

Odaily Planet Daily News: The Canadian government submitted the “Strong and Free Elections Act” (Bill C-25) on March 26, proposing to ban the use of cryptocurrencies such as Bitcoin to provide donations to political campaigns. It also classifies crypto assets together with money orders and prepaid payment instruments as “difficult to trace” sources of funds, and the ban applies to the entire political system, including registered political parties, candidates, campaign teams, and third-party campaign advertising entities. This move follows closely on the heels of the UK’s recent announcement to pause crypto-currency political donations, citing the need to prevent foreign funds from flowing into the political system through crypto assets. If the bill passes, any crypto donations received in violation must be returned or otherwise disposed of within 30 days; the maximum penalty could be up to twice the amount of the violating donation, plus a maximum fine of $100,000. The bill has currently entered the first reading stage in Parliament.

It is worth noting that Canada has allowed crypto donations since 2019, but in practice they have been used very rarely. In both the 2021 and 2025 general elections, no related donation records were disclosed. Regulators have long been concerned that the “pseudo-anonymity” of crypto assets may affect election transparency, and have ultimately shifted toward a stance of a full ban. (CoinDesk)