Canada is taking a strong step toward protecting its electoral system by proposing a complete ban on cryptocurrency donations to political parties. The move comes amid growing concerns that digital currencies could be used by foreign actors to influence elections through anonymous or hard-to-trace contributions.
The proposed legislation, called the Strong and Free Elections Act, was introduced in the House of Commons. It seeks to amend the Canada Elections Act by prohibiting political parties and third-party participants from accepting donations made through cryptocurrencies, prepaid cards, and money orders. These payment methods are considered difficult to track, raising risks of hidden foreign interference.
Steven MacKinnon, the government’s House leader, emphasized that the bill is designed to strengthen election integrity. He stated that the new measures aim to counter foreign threats and ensure that Canadian elections remain transparent, secure, and fair.
This initiative reflects a broader international trend. The United Kingdom has also expressed concerns about crypto-based political donations and is considering similar restrictions following pressure from policymakers and independent reviews.
Previous Attempts and What Happens Next
This is not the first time Canada has attempted to regulate cryptocurrency donations in politics. A similar proposal introduced in 2024 failed to pass beyond its second reading in Parliament and eventually lapsed. However, the renewed effort indicates growing urgency around the issue.
Currently, crypto donations have been allowed in Canada since 2019 and are treated similarly to property contributions. Still, concerns have been mounting. In 2024, Chief Electoral Officer Stéphane Perrault recommended banning such donations entirely, citing challenges in verifying donor identities.
If the new bill becomes law, any contributions made through banned methods would have to be returned, destroyed, or handed over to the chief electoral officer. Violations could lead to significant penalties, including fines of up to twice the donated amount. Individuals could face fines of up to $25,000, while corporations could be fined as much as $100,000.
The legislation also addresses emerging digital threats beyond cryptocurrency. It proposes expanding restrictions on the use of realistic deepfakes that impersonate political candidates, a growing concern in modern election campaigns.
Before becoming law, the bill must pass multiple readings in the House of Commons, go through committee review, and receive approval from the Senate. The final step would be royal assent from the Governor General of Canada.
