The Canadian federal government has introduced a new ban on cryptocurrency donations to political parties and campaigns. This step aims to prevent the use of crypto assets as a means of political financing, although they have not been used much in the country in the past. The regulation in question will be implemented within the scope of the Strong and Free Elections Bill (Bill C-25), which was introduced on March 26.
Scope and justification of the draft law
Bill C-25 will ban not only political donations made with cryptocurrencies, but also payment methods that are difficult to trace, such as wire transfers and prepaid payment instruments. This regulation aims to make the financing sources for political campaigns and parties more transparent and traceable.
In Canada, since 2019, donations made with cryptocurrency have been considered as movable property within the administrative framework. But in both the 2021 and 2025 federal elections, no major party publicly accepted crypto donations; To date, no statement has been made regarding the crypto purchases of political parties. Contributions had not become a preferred method in the traditional political financing system in the country, as they did not entitle them to tax receipts.
The Chief Electoral Officer had called for stricter rules for crypto donations in his post-election assessment report in June 2022. In particular, it was proposed to remove the rule that the value of some contributions of CAD 200 or less would be considered zero. By November 2024, the Chief Electoral Officer’s view became clearer, stating that due to the partially anonymous nature of cryptocurrency, there were difficulties in identifying contributors, and therefore a complete ban on donations should be imposed.
New laws and enforcement regulations
Bill C-25 was previously brought to the agenda with Bill C-65, which contained similar provisions. However, the previous bill could not become law because the parliament was suspended at the beginning of 2025. The new bill has completed its first reading in the Parliament and the legal process continues.
After the bill comes into force, any crypto donations made through prohibited means will have to be returned, destroyed or converted into cash within 30 days and the income transferred to the state. The administrative fines foreseen for parties who violate the ban are noteworthy; For individual violations, an additional penalty of up to twice the donation may be imposed, and for legal entities, an additional penalty of 100,000 Canadian dollars may be imposed.
Political financing and transparency concerns don’t just concern Canada. Recently, the UK government similarly announced a temporary ban on sending crypto assets as donations to political parties. Among the reasons is that digital assets can hide foreign financing.
Comparatively, in the United States, crypto donations to election campaigns have been possible since 2014, while the Federal Election Commission issues guidelines on how these should be declared.
While the discussions on the new bill in Canada continue in the parliament, it is thought that this regulation will have a decisive impact on the future of cryptocurrencies in the country’s political finance.
