Canada’s Parliament introduced the Strong and Free Elections Act (Bill C-25) on March 26, proposing a complete ban on crypto assets for political donations. The legislation would classify crypto assets, along with money orders and prepaid payment instruments, as ‘difficult-to-trace’ funds and exclude them from the federal election financing system.
This ban covers registered political parties, candidates, campaign teams, and third-party campaign advertising entities, meaning that crypto assets will be completely excluded from the federal election financing system. This move follows the UK’s recent temporary ban on crypto political donations, signaling a trend toward stricter regulation.
Under the bill, any crypto donations received in violation of the regulations must be returned or disposed of and turned over to the national treasury within 30 days. The maximum fine can be twice the amount of the violation, plus an additional penalty of up to $100,000.
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