A bill that would completely prohibit political donations made with cryptocurrencies in Canada has passed its second vote in Parliament. The legislation, which received broad support, now moves to the committee phase, marking a significant milestone in the legislative process.
Scope and purpose of the bill
Known as Bill C-25, or the “Strengthening and Free Elections Act,” the proposal seeks to ban not only crypto-based donations but also contributions made via hard-to-trace financial instruments such as wire transfers and prepaid cards. Any unauthorized crypto contributions must either be returned to the donor or transferred to the state treasury within thirty days by the recipient.
Since 2019, Canadians have had the legal option to make political contributions with cryptocurrency. However, no major federal party has accepted such donations so far, and no crypto contributions were reported in the most recent elections.
Parliamentary debates and political response
During the bill’s debates in Parliament, Kevin Lamoureux, Parliamentary Secretary to the Government’s House Leader from the Liberal Party, emerged as a leading advocate. Lamoureux highlighted issues such as AI-generated misinformation, foreign election interference, and administrative sanctions as key concerns. The ban on cryptocurrency donations, however, was not the central focus of the debates.
Members of the Conservative Party questioned the new financing rules and how these restrictions would be enforced. The party, led by Pierre Poilievre—who is known for his crypto-friendly stance during the last election—did not express significant opposition, and discussions in Parliament over the crypto ban remained relatively subdued.
According to observers, the primary reason for the limited resistance to these restrictions is the near total absence of cryptocurrency use in Canadian political donations to date.
International context and background
Similar policies are being considered elsewhere. Earlier in 2024, the United Kingdom introduced a law banning the use of digital assets for political contributions, citing the potential for these tools to obscure the origin of funds from foreign sources. In contrast, the United States has taken an opposing approach, with the Federal Election Commission allowing crypto donations for campaigns since 2014.
Canada’s Chief Electoral Officer had already recommended tighter oversight of crypto donations in 2022 and, by November 2024, further advised that all crypto contributions be completely banned. The rationale focused on the semi-anonymous nature of digital assets and the challenges in verifying donor identities.
A similar push appeared in the last parliamentary session with Bill C-65, which also aimed to restrict crypto donations. That initiative did not reach completion, as Parliament went into recess in January 2025, but the new bill has now revived legislative action on the matter.
The role of digital assets in politics is under increasing scrutiny worldwide. Canada’s latest move is seen as a noteworthy development for the future of the country’s crypto ecosystem and its intersection with the political process.
