A new piece of Canadian legislation, Bill C-25, seeks to prohibit cryptocurrency, money order, and prepaid card donations throughout the federal political system. The bill targets a fundraising channel that has seen almost no activity since cryptocurrency contributions were first permitted in 2019. The proposal is currently at its first reading in the House of Commons.
The push for an outright ban follows a shift in position by the Chief Electoral Officer, who had previously favored stricter regulation rather than prohibition. By 2024, the officer moved to recommending a full ban, pointing to the pseudo-anonymous nature of cryptocurrency transactions. The core concern centers on the fundamental difficulty of confirming the identities of those making contributions.
Bill C-25 is a reintroduction of the earlier Bill C-65, which failed to pass. The new legislation carries forward similar provisions while adding specific enforcement mechanisms designed to address illegal contributions. Its reintroduction signals continued legislative interest in tightening oversight of political financing in Canada.
Under the proposed rules, parties and campaigns would face a 30-day deadline to return or hand over any contributions received through prohibited channels. Penalties for non-compliance are set at up to twice the value of the illegal contribution. Corporations found in violation could face additional fines reaching $100,000.
The bill’s scope covers the entire federal political system, meaning the restrictions would apply broadly rather than to specific parties or campaign types. Despite the breadth of the proposed ban, the practical impact may be limited given how rarely cryptocurrency has been used as a donation method since it was authorized. Supporters of the measure argue that the risks posed by anonymous digital transactions outweigh any benefit from keeping the channel open.
Originally reported by CoinDesk.
