Canada proposes Bill C-25 to ban crypto donations in elections, aiming to improve transparency, prevent hidden funding, and strengthen electoral integrity nationwide.
Canada has taken a new step to tighten election rules and protect its political system. The government has come up with a proposal to block crypto donations. This move is to minimize the risks associated with hidden funding. As a result, lawmakers are hoping to improve trust and transparency in elections across the country.
Canada Introduces Bill C-25 to Restrict Crypto Election Funding
The proposal, which is named Bill C-25 or the Strong and Free Elections Act, was introduced on March 26, 2026. Steven MacKinnon introduced the bill in Parliament. It aims to restrict crypto donations to political parties, candidates and third-party advertisers. Moreover, the law is also directed at money orders and prepaid cards.
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These payment methods are considered to be difficult to trace. Therefore, officials believe that they might permit hidden or foreign funding. By banning them, the government wants to minimize the risks of elections. In addition, the law is applicable to many groups. These include political parties, riding associations and leadership contestants.
Furthermore, the bill establishes clear rules for how banned donations are to be handled. Recipients must take action within 30 days. They can return, destroy or convert the funds. After that, the money has to go to the Receiver General. This process helps to ensure that there are no illegal funds in the system.
Strict Penalties and New Safeguards Aim to Protect Elections
The proposed law contains stiff penalties for violations. Individuals would be fined up to 2 times the value of the donation. In addition, fixed penalties can be as high as $25,000 for individuals. For corporations, the fines may reach as high as $100,000. Therefore, the strict implementation is an essential part of the plan.
Apart from financial rules, the bill also deals with digital risks. It broadens protections of deepfake content in elections. These fake videos or images can trick the voters by mimicking the real candidates. As such, the law seeks to prevent false information from becoming widespread before it is spread.
Meanwhile, election officials have been backing tightening rules. The Chief Electoral Officer in 2024 raised concerns regarding the donations from crypto. He said crypto assets are “pseudo-anonymous” and it is difficult to identify donors. Therefore, it is difficult to track the actual source of funds.
Low Crypto Use and Global Trends in Favor of the Proposed Ban
Interestingly, the use of crypto donations is very low in Canada. Although this is legal since 2019, no major party has reported such donations. This includes the federal elections of 2021 and 2025. Therefore, the actual implications of the ban can be limited.
However, the change is still regarded as necessary by the government. Even low usage can be dangerous if not controlled. In addition, global trends are trending in a similar direction. As an example, the United Kingdom has also limited crypto donations recently.
This proposal is not the first attempt. A previous bill, for example, called Bill C-65, failed in January 2025. It came to an end when the Parliament was dissolved. Now, Bill C-25 returns with similar measures with an updated set of details. As a result, lawmakers have another opportunity to pass the reforms.
Overall, Canada’s move is part of mounting fears over election security. Governments would like to ensure that funding sources are clear and legal. Therefore, the ban on hard-to-trace payments could be a positive factor in building public confidence. If passed, the law might influence election rules in other countries in the future as well.