Canada has advanced a bill to block cryptocurrency donations in federal elections, pushing tighter controls on how political funding is handled.
Summary
- Canada’s Bill C-25 has cleared second reading in the House of Commons, moving the proposal to committee for detailed review.
- The legislation seeks to ban cryptocurrency donations to political parties and candidates, citing concerns over traceability and compliance with funding rules.
According to Canada’s House of Commons, Bill C-25, known as the Strong and Free Elections Act, cleared its second reading on Friday, allowing lawmakers to move the proposal to committee for detailed review and possible amendments.
Tabled on March 26, the bill would bar political parties and candidates from accepting crypto contributions, with regulators identifying digital assets as a gap in existing campaign finance rules. Lawmakers backing the measure have linked the restriction to concerns around verifying the source of funds and enforcing contribution limits under current law.
No timeline has been set for the committee stage, leaving the pace of further progress dependent on parliamentary scheduling.
The decision to restrict crypto in elections is unfolding alongside efforts to define how digital assets fit within the financial system. Regulators have been working on stablecoin oversight frameworks that would expand the role of the central bank while refining rules for custody, investment funds, and storage practices.
Policy direction has taken shape under Prime Minister Mark Carney, who has previously expressed skepticism toward cryptocurrencies. Despite that, Canadian authorities have continued to build a structured regulatory approach, separating financial system integration from political use cases where tighter limits are now being proposed.
Crypto donations face growing scrutiny across democracies
Debate around crypto-linked political funding has intensified beyond Canada, with similar concerns raised in other jurisdictions. In the United Kingdom, the Joint Committee on the National Security Strategy warned in its March 18 report that cryptocurrency donations pose risks to transparency and national security due to difficulties in tracing their origin.
The UK committee called for an immediate halt to such donations until clearer rules are introduced, citing the possibility of foreign actors attempting to influence political outcomes. Lawmakers also proposed stricter disclosure thresholds and stronger penalties tied to foreign funding violations.