Canada's Bill C-25 proposes banning political donations in cryptocurrencies, citing transparency concerns.
The Canadian government is advancing Bill C-25, which seeks to prohibit political donations made in cryptocurrencies. This proposed legislation aims to enhance transparency across the political landscape, impacting registered parties, electoral alliances, candidates, and third-party entities involved in election advertising.
Dubbed the "Strong and Free Elections Act," the bill raises alarms regarding the pseudo-anonymity inherent in cryptocurrencies, which complicates the identification of contributors. Violations of the proposed rules would incur penalties amounting to double the value of any improper contribution.
This marks the second legislative attempt to ban cryptocurrency donations, following the failure of Bill C-65, which contained similar provisions but was dismissed after Parliament was dissolved in January 2025. The current bill is now undergoing its first reading in the House of Commons.
Shift from Acceptance to Prohibition
Since 2019, Canada has allowed cryptocurrency donations under an administrative framework that regards them as non-monetary contributions, akin to property. However, during the 2021 and 2025 elections, no major federal parties accepted such donations. Additionally, these contributions were not eligible for tax benefits, and any donations exceeding $200 required public disclosure of the contributor's identity.
Canada’s Chief Electoral Officer, Stéphane Perrault, has progressively advocated for stricter regulations on cryptocurrency donations. Following the June 2022 elections, he recommended tightening existing rules, and in November 2024, he called for a complete ban, citing ongoing identification challenges.
In a related global context, the UK government enacted urgent changes in March 2026 to limit political donations in cryptocurrency, reflecting a growing trend towards regulation in this area.
