A proposed legislation banning cryptocurrency political donations in Canada has advanced through Parliament, gaining support from multiple parties on Friday and encountering minimal opposition.
Bill C-25, known as the Strong and Free Elections Act, successfully passed its second reading in the House of Commons. The bill is now set for further examination by a committee, indicating lawmakers’ general agreement with its fundamental principles before it undergoes detailed review and possible amendments.
Under this legislation, political contributions made via cryptocurrency, money orders, and prepaid payment products will be prohibited due to their challenging traceability.
The ban would apply throughout the federal system, affecting registered parties, electoral district associations, candidates, leadership and nomination contestants, as well as third-party election advertisers. Recipients are required to return or remit illegal crypto contributions to the Receiver General within 30 days—equivalent to Canada’s version of the U.S. Treasury.
Kevin Lamoureux, a Liberal parliamentary secretary and floor spokesperson during debates, was the bill’s primary advocate in Parliament. In his opening statement, he discussed issues such as AI deepfakes, foreign interference, and administrative penalties, without mentioning cryptocurrency according to an official transcript. When asked by a fellow Liberal to prioritize among foreign interference in nominations, political financing transparency, or artificial intelligence, Lamoureux chose AI.
Several Conservative MPs, led by Pierre Poilievre who presented himself as crypto-friendly during the last election, questioned aspects of the new political financing rules and their implementation. However, cryptocurrency did not become a major point of contention.
Conservatives supported referring the bill to committee for further scrutiny, while other opposition parties raised various concerns about different parts of the legislation but did not focus on cryptocurrencies.
The limited resistance might reflect the minimal use of crypto in Canadian politics. While technically permissible since 2019 when classified as non-cash, in-kind contributions by Elections Canada, no major federal party has accepted cryptocurrency publicly, nor have such donations been reported in recent elections.
C-25 is a repeat effort following its predecessor, Bill C-65, which contained similar crypto language and was discontinued after Parliament was prorogued—suspended without dissolving—in January 2025. In 2022, Canada’s Chief Electoral Officer advised stricter regulation of cryptocurrency donations, later recommending an outright ban in November 2024 due to issues with pseudo-anonymity and identity verification.
In contrast, the U.S. has allowed crypto donations in political campaigns since 2014 under the Federal Election Commission. Meanwhile, earlier this year, the U.K. enacted a law banning such donations over concerns that digital assets might obscure the origins of foreign funds in British politics.