Canada Advances Bill to Ban Crypto Political Donations

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Canada has moved closer to banning cryptocurrency donations in federal politics after Bill C-25 passed second reading in the House of Commons and was sent to committee.

The bill, known as the Strong and Free Elections Act, is now before the House procedure and affairs committee. Parliament’s bill tracker shows the second reading and referral to committee were completed on April 24, 2026.

The Bill Targets Hard-to-Trace Contributions

The proposed law would bar registered parties, registered associations, candidates, nomination contestants and leadership contestants from accepting contributions made in cryptoassets. It would also prohibit contributions made by money order or prepaid payment product. The bill defines cryptoassets as digital assets secured by cryptographic measures.

The same restrictions would apply to third parties that receive contributions for partisan activity, partisan advertising, election advertising or election surveys. If a prohibited contribution is received, the recipient would have 30 days after becoming aware of it to return it unused, destroy it unused, or convert it to money and send the proceeds to the Chief Electoral Officer.

Election Integrity is Driving the Proposal

The bill is part of a wider election integrity package aimed at tightening Canada’s federal political financing rules and reducing the risk of foreign interference.

Crypto donations have drawn scrutiny because wallet-based transfers can be harder for campaigns and regulators to trace than ordinary bank payments. The concern is that political actors may struggle to verify the real source of funds, especially when donations move through intermediaries or privacy-focused tools.

The proposal does not target one cryptocurrency. It applies broadly to cryptoassets, which the bill defines as digital assets protected by cryptographic measures, meaning the restriction would cover Bitcoin, Ether, stablecoins and other digitally secured assets used as political contributions.

The Measure Still Has a Long Way to Go

Second reading does not make the ban law. Bill C-25 still needs committee review, report stage, third reading in the House, Senate approval and royal assent before it can take effect.

Parliament’s tracker shows the bill has not yet reached the report stage, third reading or the Senate, and that there have been no recorded House votes so far.

Canada is Following a Wider Political-Finance Trend

Canada’s move comes as lawmakers in several democracies look more closely at whether crypto donations create loopholes in campaign finance rules. Supporters of a ban say political donations should move through channels that make donor identity, residency and contribution limits easier to verify.

For crypto firms and political campaigns, the message is clear. If Bill C-25 becomes law, crypto will no longer be an accepted funding channel in Canada’s federal political system.