Canada Advances Bill C-25 to Ban Cryptocurrency Donations to Federal Campaigns

Canada moved closer to banning cryptocurrency donations to federal political campaigns after Bill C-25, the Strong and Free Elections Act, passed a second reading in the House of Commons on Friday.

Cointelegraph said the vote “passed a second reading in the House of Commons on Friday,” and that lawmakers would “now study it in detail at committee, where amendments can still be made.”

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CoinDesk similarly reported that “Bill C-25, the Strong and Free Elections Act, cleared second reading Friday and heads to committee,” while FinanceFeeds described the same step as the bill advancing “after lawmakers advanced new election legislation in Ottawa.”

The legislation would prohibit political parties and candidates from accepting cryptocurrency donations, closing what regulators view as “a gap in campaign finance rules,” according to Cointelegraph and TradingView.

CoinCentral added that the bill would prohibit “federal political entities from accepting crypto contributions,” and said the measure would place cryptocurrency alongside “money orders and prepaid payment products” as funding methods considered difficult to trace.

Multiple outlets also tied the bill to a broader overhaul of election rules aimed at “strengthening transparency, tightening enforcement and reducing the risk of foreign interference,” with Cointelegraph specifying that the bill was “First introduced on March 26.”

While there is no fixed committee date, Cointelegraph said “There is no fixed date yet for when Bill C-25 will be taken up in committee,” and CoinCentral echoed that “There is no fixed date for the committee review.”

The bill’s restrictions would apply across Canada’s federal election system and cover a wide range of participants, not just political parties.

CoinCentral said Bill C-25 “would apply across Canada’s federal election system,” listing “Registered political parties, electoral district associations, candidates, leadership contestants, nomination contestants, and third-party advertisers” as groups barred from accepting cryptocurrency donations.

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CoinDesk described the same scope as covering “all major participants in federal elections, including parties, candidates and third-party advertisers,” and said the ban would apply to “registered parties, electoral district associations, candidates, leadership and nomination contestants, and third parties that run election advertising.”

Cointelegraph likewise said the legislation would “prohibit political parties and candidates from accepting cryptocurrency donations,” while also describing the bill as “a broader overhaul of election laws aimed at strengthening transparency, tightening enforcement and reducing the risk of foreign interference.”

Several outlets also described what happens if a prohibited crypto contribution is received.

CoinCentral said “If a prohibited crypto contribution isreceived, the recipient would have 30 days to return it,” and if returning it is not possible, “the funds would have to be sent to the Receiver General of Canada.”

CoinDesk similarly stated that “any illegal crypto contributions” must be “returned or sent to the Receiver General within 30 days.”

Beyond the return-and-remit mechanism, the bill is described as classifying crypto alongside other “hard-to-trace” methods, with CoinDesk saying it would “classif[y] them alongside other hard-to-trace funding methods.”

The push for Bill C-25 is framed in the sources around traceability, compliance, and foreign interference risks, with multiple outlets describing crypto donations as difficult to verify under existing campaign finance rules.

Cointelegraph said crypto donations became a focal point due to “concerns over traceability and compliance with existing limits,” and described the bill as “closing what regulators see as a gap in campaign finance rules.”

CoinCentral added that the measure would place cryptocurrency alongside “money orders and prepaid payment products as funding methods considered difficult to trace,” and said lawmakers were addressing the “pseudo-anonymous nature of some crypto transactions and the difficulty of confirming whether donations comply with federal limits and source rules.”

CoinDesk tied the bill’s rationale to the Chief Electoral Officer’s recommendations, stating that “Canada’s Chief Electoral Officer recommended tighter regulation of crypto donations in 2022,” and then in “November 2024, shifted to recommending an outright prohibition.”

CoinDesk also said the shift was based on “pseudo-anonymity and the difficulty of verifying contributors' identities.”

FinanceFeeds described the same core issue as “concerns around traceability, compliance with contribution limits, and the potential for cross-border funding,” and said that while “blockchain transactions are publicly recorded,” linking wallet activity to verified identities remains a challenge.

The Arabic-language outlet “المتداول العربي | West Asian” similarly described the bill as classifying cryptocurrencies among “hard-to-trace” payment methods and said the aim was to “strengthen protection of the democratic system from any potential gaps in funding campaigns through cryptocurrencies.”

That outlet also said Canada first allowed cryptocurrency donations in 2019 as non-cash contributions, but that “uptake remained extremely limited,” and that “no publicly disclosed donations of this type were recorded in the most recent elections.”

The sources describe the parliamentary debate as limited on the crypto question itself, with attention instead directed to other priorities such as foreign interference, political financing transparency, and artificial intelligence deepfakes.

CoinDesk said the bill “passed second reading Friday and moved to committee review,” and described the vote as having “support from Conservatives” while “raising but don’t challenge the proposed ban on bitcoin contributions.”

CoinCentral

CoinDesk also identified Kevin Lamoureux, describing him as “the Liberal parliamentary secretary to the government’s House leader,” and said his “opening speech walked through AI deepfakes, foreign interference, and administrative penalties,” while “Crypto did not come up, according to an official transcript.”

CoinCentral similarly said “During House debate, crypto did not become a central point of dispute,” and that the discussion covered “artificial intelligencedeepfakes, foreign interference, administrative penalties, and political financing transparency.”

The same CoinDesk account said Conservative MPs “raised questions about political financing rules and how new restrictions would be applied,” and it connected the party’s stance to Pierre Poilievre, noting that “the party is led by Pierre Poilievre, who marketed himself as crypto-friendly during the last election.”

CoinCentral added that “Conservative MPs supported sending the legislation to committee,” even though the party had been led by Pierre Poilievre.

FinanceFeeds described the second reading as signaling “support in principle and sending the proposal to committee for further review,” and said “amendments are still possible at the committee stage.”

The Arabic-language outlet “المتداول العربي | West Asian” named Steven MacKinnon as the Speaker of the House and said he “introduced Bill C-25 titled 'The Strong and Free Elections Act,'” classifying cryptocurrencies among “hard-to-trace” payment methods.

Beyond the ban itself, the sources describe enforcement mechanics and potential penalties, while also emphasizing that Bill C-25 still must clear additional legislative steps.

“Summary - A bill banning political donations made with virtual assets passed its second reading in Canada's House of Commons”

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CoinCentral said that if a prohibited crypto contribution is received, the recipient would have “30 days to return it,” and if returning is not possible, “the funds would have to be sent to the Receiver General of Canada.”

CoinDesk

CoinDesk likewise said recipients would have “30 days to return illegal crypto contributions or remit them to the Receiver General,” and described the bill as requiring any “illegal crypto contributions” to be handled within that timeframe.

The Arabic-language outlet “المتداول العربي | West Asian” added that the bill imposes “stiff penalties,” including returning or transferring cryptocurrency donations within “30 days,” and said “fines potentially up to twice the value of the donation.”

That same outlet specified that “Regulatory fines could rise substantially, reaching CAD 100,000 in some cases.”

It also said Bill C-25 is “a second iteration after a previous bill stalled in Parliament,” and that “The new law still needs several legislative stages before it takes effect,” including “readings in Parliament, committee reviews, and Senate approval.”

Cointelegraph said there is “no fixed date yet for when Bill C-25 will be taken up in committee,” and CoinDesk described the bill as “referred to committee for further review.”

FinanceFeeds described the next phase as committee work, stating “Bill C-25 will now move to committee review, where lawmakers can examine its provisions in detail and propose amendments,” while noting “There is no fixed timeline for when the next stage will be completed.”