- Bill C-25 was introduced on March 26, targeting crypto in federal political donations.
- Individual violators face fines up to $25,000; corporations up to $100,000
- The legislation also prohibits AI-generated deepfakes in federal campaign materials
Canada introduced federal legislation Wednesday that would prohibit the use of cryptocurrency in political donations, framing the move as part of a wider effort to shield democratic processes from foreign interference.
The Strong and Free Elections Act, Bill C-25, defines digital assets including Bitcoin, alongside untraceable instruments such as money orders and prepaid gift cards, as prohibited contributions. The ban would apply to registered parties, riding associations, candidates, leadership and nomination contestants, and third-party advertisers.
Government House leader Steven MacKinnon tied the bill to a broader legislative push against foreign meddling and positioned it as an alignment with international partners on election integrity and security.
Why the Existing Framework Fell Short
Cryptocurrency has been permissible in federal political donations since 2019, but within tight constraints: only public blockchain transactions qualified, donations above $200 triggered disclosure requirements, and candidates were required to convert received crypto into Canadian dollars before spending it. No tax receipt was issued for such contributions.
In practice, not a single federal political party has ever accepted cryptocurrency, and no crypto donations were disclosed in either the 2021 or 2025 federal elections. Despite that, regulators grew increasingly uneasy with enforcement gaps that existing rules could not close.
Chief Electoral Officer Stephane Perrault raised the issue in a 2022 post-election report, recommending that Elections Canada weigh restrictions on unregulated assets like Bitcoin.
By November 2024, his position had hardened considerably, Perrault formally called for a full ban, citing the pseudo-anonymous nature of crypto transactions and his office’s inability to reliably verify donor identities.
Penalties and Path to Law
The bill has prior history. It was originally tabled as Bill C-65 before Parliament’s prorogation in January 2025 effectively killed it. The revived legislation passed its first House of Commons reading Thursday and must now clear committee review and Senate approval before receiving royal assent.
Penalties are substantial. Prohibited donors must return, destroy, or remit funds to the Receiver General within 30 days of receipt. Fines reach $25,000 for individuals and $100,000 for corporations.
The bill also targets deepfakes, banning fabricated audio or video in federal campaign materials, a provision added in direct response to documented manipulation attempts observed in other jurisdictions.
READ MORE: Bitcoin Price Prediction: BTC Faces Drop to $50K After H&S Break
