Canada Advances Bill C-25 to Ban Cryptocurrency Political Donations

Canada is moving closer to banning crypto donations in political campaigns as lawmakers advance Bill C-25, known as the Strong and Free Elections Act. The proposed legislation passed its second reading in the House of Commons, signaling broad support in principle and sending the bill to committee for detailed review and potential amendments.

First introduced on March 26, the measure forms part of a wider overhaul of election laws designed to strengthen transparency, improve enforcement mechanisms, and reduce risks linked to foreign interference. The bill specifically proposes prohibiting political parties and candidates from accepting cryptocurrency contributions, addressing concerns about traceability and compliance with donation limits.

Canada Expands Crypto Regulation While Tightening Election Rules

The proposed donation ban comes as Canada continues expanding regulatory oversight across the digital asset sector. Authorities are advancing frameworks that would grant the Bank of Canada supervisory powers over stablecoins, while also refining rules for crypto investment funds, custodians, and cold storage operations.

The regulatory push is unfolding under Prime Minister Mark Carney, who has previously expressed skepticism toward cryptocurrencies. Despite this cautious stance, policymakers are working toward integrating digital assets into the financial system while restricting their use in sensitive areas such as political financing.