Canada Moves to Ban Crypto Political Donations Over Foreign Interference Concerns

Canada’s federal government has introduced new legislation proposing a full ban on crypto donations to political parties, citing risks linked to foreign interference and anonymous funding. The proposed Strong and Free Elections Act seeks to amend existing election laws by prohibiting donations made through cryptocurrency, money orders, and prepaid cards, which authorities say are difficult to trace.

Proposed Election Law Targets Anonymous Contributions

Government officials stated that the measure aims to protect election integrity by preventing untraceable financial contributions. The bill was introduced in the House of Commons and must pass several readings and committee reviews before moving to the Senate and receiving final approval.

Steven MacKinnon, the leader of the government in the House of Commons, said in an X statement on Thursday that;

Crypto donations have been permitted in Canada since 2019, treated similarly to property contributions. However, a 2024 recommendation from the country’s chief electoral officer highlighted identification challenges associated with crypto-based donations, urging stricter controls.

Previous Attempt Failed as New Penalties Proposed

A similar proposal introduced in 2024 did not pass beyond its second reading, preventing it from becoming law. Under the new proposal, violations could result in penalties of up to twice the contributed amount, along with fines reaching $25,000 for individuals and $100,000 for corporations, reflecting stronger enforcement plans.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.