On March 26, 2026, Canada’s Liberal government introduced Bill C-25, the Strong and Free Elections Act. The bill would prohibit cryptocurrency donations to federal political parties, riding associations, candidates, leadership contestants, nomination contestants, and third-party election advertisers. It groups crypto with money orders and prepaid cards as payment methods that are difficult to trace and therefore pose risks to election integrity, per the legislation.
The ban would apply across the entire federal political financing system and comes after years of warnings from Canada’s Chief Electoral Officer, Stéphane Perrault.
Canada first permitted crypto donations in 2019, classifying them as non-monetary contributions similar to property. However, no major federal party ever publicly accepted them, and no crypto donations were disclosed in either the 2021 or 2025 federal elections. Small crypto contributions (under CAD $200 from non-professional sellers) were effectively exempt from full reporting.
Initially, the Chief Electoral Officer recommended tighter regulation and mandatory receipting/reporting for all crypto donations. By November 2024, that position had hardened into a call for a full prohibition, citing the pseudonymity of crypto and the fundamental difficulty in identifying contributors.
This is the second attempt at such a ban. A nearly identical provision in Bill C-65 died when Parliament was prorogued in January 2025. Bill C-25 has completed first reading and must still pass multiple readings, committee review, Senate approval, and royal assent before becoming law.
The timing is notable. Canada introduced the bill just one day after the UK announced a moratorium on crypto donations to political parties, citing risks of illicit finance and foreign interference. Both countries are framing the restrictions as defensive measures against foreign influence rather than responses to widespread documented abuse.
This creates a clear divergence with the United States, where crypto donations have been permitted since a 2014 FEC advisory opinion and played a major role in the 2024 election cycle (with over $190 million spent through vehicles like Fairshake).
Although no major Canadian party has accepted crypto donations to date, the proposed ban would close the door entirely and send a strong signal about how Canada views the risks associated with cryptocurrency in the political sphere. It reflects growing global concern over the use of digital assets in elections, especially regarding traceability and potential foreign interference.
Current Status: Bill C-25 is at first reading and faces a lengthy legislative process before it can become law.
