Canada introduced Bill C-25, which bans cryptocurrency donations to parties, candidates, and third-party advertisers across the federal electoral system.

This ban addresses issues that government officials describe as transparency issues, but there have been no reported cases since cryptocurrency political donations were allowed in 2019.

The ‘Strong and Free Elections Act’ classifies cryptocurrency as a 'hard-to-trace' funding method along with money orders and prepaid payment methods.

The maximum penalty is double the amount of the donation, and if directed at a corporation, an additional CAD 100,000.

Transition from a complete ban in regulation

The Chief Electoral Officer of Canada initially recommended tightening regulations after the 2022 federal election, but

In November 2024, it changed its stance, demanding a complete ban due to the pseudo-anonymity of cryptocurrency and the 'fundamental difficulties' of verifying donor identities.

the administrative framework established in 2019 classified cryptocurrency donations as non-monetary contributions similar to property. Acceptable donations required verification on a public blockchain and excluded privacy coins like Monero (XMR) and ZCash (ZEC), mandating conversion to fiat currency before expenditure.

Recipients must return, dispose of, or convert disallowed donations received after the prohibition comes into effect within 30 days, and the conversion proceeds are to be deposited into the Receiver General.

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Second legislative attempt and international context

Bill C-25 is a reintroduction of provisions from Bill C-65, which was discarded when Parliament prorogued in January 2025. The bill is currently at the first reading stage in the House of Commons.

The UK will implement a moratorium on cryptocurrency political donations in March 2026, citing concerns about foreign interference. The Federal Election Commission (FEC) in the United States has allowed cryptocurrency political donations since 2014 and provides disclosure guidelines for campaign organizations receiving digital assets.

Both major Canadian parties did not accept cryptocurrency sponsorships in the 2021 federal election, and there were no publicly reported instances of cryptocurrency donations under the 2019 system.

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