The Canadian government has decided to ban cryptocurrency-based political donations as part of Bill C-25, introduced on March 26 to amend the Elections Act and block untraceable overseas funding channels. The move aims to reduce foreign influence and illicit funding in elections, with penalties for noncompliance.
Under the proposal, cryptocurrency contributions to political parties and related activities would be banned, with similar restrictions extended to money orders and prepaid payment methods due to traceability concerns. The regulation would require political agents to return or dispose of crypto donations within 30 days. If the asset cannot be returned, a third-party organization would convert it to cash and remit the proceeds to the Chief Electoral Officer, who would then forward the funds to the federal treasury. Violations include severe penalties: deliberate acceptance of crypto donations can incur fines up to twice the donation amount, and participating entities face even higher penalties, including an automatic base fine of $100,000 plus double the donation, a measure that mirrors the United Kingdom’s approach and contrasts with the United States.
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