New Canada bill seeks full ban on crypto campaign donations

Canada has moved to restrict how political groups receive campaign funds, with a new bill that targets cryptocurrency donations. 

The proposal forms part of a wider push to reduce foreign interference risks and tighten rules around election financing before the next federal vote.

Canada’s federal government has proposed a full ban on cryptocurrency donations to political parties and third parties involved in elections. The measure appears in the Strong and Free Elections Act, which had its first reading in the House of Commons on Thursday.

The bill would also ban donations made through money orders and prepaid cards. The government said these payment methods can make contributions harder to trace and may create room for anonymous funding during election periods.

Steven MacKinnon, the government House leader and sponsor of the bill, said the proposed changes aim to protect election integrity. In a statement on X, he said, “With the introduction of the Strong and Free Elections Act, new investments to counter foreign threats and stronger government coordination, we are acting to ensure our elections remain free, fair and secure at all times.”

The proposed amendments would update the Canada Elections Act and require political entities to reject banned forms of payment. The government has framed the bill as part of a broader effort to close gaps that foreign actors could use to influence political activity.

Moreover, this is not Canada’s first attempt to stop crypto donations in politics. A similar proposal appeared in 2024 under then public safety minister Dominic LeBlanc, but it failed to move beyond the second reading and later expired.

Crypto political donations have remained legal in Canada since 2019. Elections Canada has treated them as property donations, but concerns about tracing contributors have continued. In 2024, Chief Electoral Officer Stéphane Perrault recommended a full ban, writing that crypto “poses challenges in identifying a contributor.”

Bill also sets penalties and wider election rules

If Parliament passes the bill, political groups would need to return, destroy or transfer prohibited contributions to the chief electoral officer. The proposed penalties include fines of up to twice the amount donated, plus $25,000 for individuals and $100,000 for corporations.

The bill also expands rules on deepfakes that imitate election candidates to mislead voters. Canada’s move came on the same day the UK announced’ plans for a moratorium on crypto political donations, showing that concern over digital election risks now extends beyond one country.