Canada Proposes Ban on Cryptocurrency Use for Political Donations

Canada’s Bill C-25, the “Stronger Democracy for Canada Act,” passed second reading in Parliament and has moved to committee review. The bill proposes banning the use of cryptocurrencies for political donations. It classifies crypto assets alongside instruments such as bank drafts and prepaid payment instruments as “hard-to-trace sources of funds,” applying this restriction to political parties, candidates, and third-party election advertising entities. Violating donations must be refunded to the donor or remitted to the Receiver General within 30 days. While Canada has permitted cryptocurrency donations since 2019, actual usage has been minimal. The UK has already implemented a similar ban, whereas the U.S. continues to allow crypto-based political contributions.