Canada’s Bill C-25 Moves to Ban Crypto Donations from Federal Political Campaigns

TLDR:

• Canada’s Bill C-25 bans crypto, money order, and prepaid card donations across Canada’s political system.
• Canada’s Chief Electoral Officer shifted from tighter regulation to a full ban by November 2024.
• No major federal party has ever disclosed a crypto donation in either the 2021 or 2025 elections.
• Violators face penalties up to twice the contribution’s value, plus $100,000 fines for corporations.

Crypto donations to political campaigns in Canada may soon be prohibited entirely. The federal government introduced Bill C-25, the Strong and Free Elections Act, on March 26, 2026.

The bill proposes a full ban on cryptocurrency, money order, and prepaid card donations across the political system.

This move follows years of concern from Canada’s Chief Electoral Officer about risks to electoral transparency.

A Rarely Used Channel Under Heavy Scrutiny

Canada first permitted crypto donations in 2019 under an administrative framework. That framework classified digital assets as non-monetary contributions, similar to property.

However, no major federal party has ever publicly accepted cryptocurrency donations. Neither the 2021 nor the 2025 elections recorded any disclosed crypto contributions.

Under the original framework, contributions were not eligible for tax receipts. That was a strong disincentive in a system where donors routinely claim tax credits.

Contributors of more than $200 had to be identified publicly by name and address. Only cryptocurrencies with verifiable public blockchains were permitted, excluding privacy coins like Monero and ZCash.

Despite low actual use, Canada’s Chief Electoral Officer grew increasingly concerned over time. In a June 2022 post-election report, the CEO recommended tighter regulation of crypto contributions.

By November 2024, the position had shifted from regulation to a full ban. The CEO stated that contributor identification is “fundamentally difficult,” pointing to cryptocurrency’s pseudo-anonymity as a core transparency challenge.

Bill C-25 is not the first attempt to introduce such a ban in Canada. Its predecessor, Bill C-65, contained identical provisions but died when Parliament was prorogued in January 2025.

The new bill was reintroduced to close what the CEO described as a transparency gap in the electoral financing system. It is currently at first reading in the House of Commons.

Penalties, Deadlines, and a Broader Global Trend

Bill C-25 sets clear deadlines for handling any prohibited contributions already received. Recipients have 30 days to return, destroy, or convert and remit any banned crypto contributions.

Proceeds from converted contributions must be forwarded to the Receiver General. This process covers all registered parties, candidates, and third parties engaged in election advertising.

The penalties for violations are firm and clearly outlined. Maximum administrative penalties can reach twice the value of the offending contribution.

Corporations face an additional penalty of up to $100,000. These measures are intended to discourage any attempt to bypass the ban.

Canada is not acting alone on this issue. The United Kingdom recently announced an immediate moratorium on cryptocurrency donations to political parties.

The UK cited concerns that digital assets could be used, in its own words, to “hide the origins of foreign money” in British politics. Both countries are responding to similar transparency challenges in the evolving digital finance space.

In contrast, the United States continues to permit crypto donations to political campaigns. The Federal Election Commission has offered guidance on disclosing Bitcoin and other crypto contributions since 2014.

Canada’s approach marks a clear departure from the American model. Whether other nations will follow Canada and the UK on this path remains to be seen.

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