Canada’s federal government has introduced legislation to completely ban cryptocurrency donations to political parties. The proposed Strong and Free Elections Act cites concerns that foreign entities could use crypto’s relative anonymity to interfere in elections. Similar to a measure recently announced in the UK, the bill aims to prohibit hard-to-trace contributions.
Canada’s federal government has proposed a total ban on cryptocurrency donations to political parties. The government cited concerns that foreign entities could exploit the technology to interfere in elections.
Known as the Strong and Free Elections Act, the bill was introduced on Thursday and seeks to amend the Canada Elections Act. It would prohibit parties and third parties from accepting donations in crypto, money orders, and prepaid cards to prevent anonymous contributions.
The bill’s sponsor, Steven MacKinnon, the leader of the government in the House of Commons, stated the measures are intended to block foreign interference. “With the introduction of the Strong and Free Elections Act, new investments to counter foreign threats and stronger government coordination, we are acting to ensure our elections remain free, fair and secure at all times,” he said.
Canada is not alone in its concerns as mentioned in the announcement. The UK government also announced plans for a moratorium on crypto donations on Thursday.
This current bill had its first reading in the House of Commons on Thursday. To become law, it must progress through several readings and a committee stage, then pass through the Senate.
A similar bill was proposed in 2024 but failed to advance past the second reading. Crypto political donations in Canada have been permitted since 2019 and are treated similarly to property donations.
However, a 2024 report by Stéphane Perrault, the chief electoral officer, recommended a ban. The report stated crypto “poses challenges in identifying a contributor.”
If passed, contributions made using banned methods must be returned, destroyed, or delivered to the chief electoral officer. Penalties for violations could include up to twice the amount contributed, plus $25,000 for individuals and $100,000 for corporate entities.
