The Government of Canada has proposed Bill C-25, the “Act on Strong and Free Elections,” which aims to impose a complete ban on the use of cryptocurrencies for funding political parties and campaigns. The document also covers money transfers and prepaid cards that have low transparency levels, with the goal of increasing control over the sources of political contributions.
This is reported by Business • Media
Reasons for Banning Cryptocurrencies in Political Financing
The legislative initiative was introduced on March 26, 2026, by the government leader in the House of Commons, Steven MacKinnon. Its key objective is to strengthen oversight of election financing and minimize the risks of hidden or foreign influence on political processes. The bill emerged following recommendations from the Chief Electoral Officer and an investigation into cases of foreign interference in elections.
According to the new rules, donations in cryptocurrencies from political parties and candidates to third-party participants in election campaigns will be completely prohibited. Those who violate the new regulations will be given 30 days to return the funds or transfer them to the state.
“The authorities believe that the pseudonymity of cryptocurrencies complicates the identification of donors and increases the risks of abuse.”
International Context and Previous Experience
Until now, Canada allowed political donations in cryptocurrencies, classifying them as non-monetary contributions since 2019. However, in practice, major political parties have hardly used this tool—none of them reported such receipts during the 2021 and 2025 elections.
The current bill is already the second attempt to implement such a ban after a failed initiative that was not passed due to the dissolution of Parliament. For the document to come into effect, it must undergo several readings and receive approval in the Senate.
This initiative coincides with actions taken by the United Kingdom, where a moratorium on crypto donations has also been introduced due to concerns about foreign interference in electoral processes. Meanwhile, in the United States, donations in cryptocurrencies remain permitted at the federal level, which highlights the divergence in approaches between countries.
It was previously reported that major players in the cryptocurrency market, such as Coinbase and Ripple, spent around $100 million on political donations in the United States.