Canada advances bill to ban crypto donations in federal races

The House of Commons passed second reading of Bill C-25 on Friday, advancing federal legislation that would bar political parties and candidates from accepting cryptocurrency donations and sending the measure to committee for clause-by-clause review.

First introduced on March 26, Bill C-25 is a broader overhaul of Canada’s election laws aimed at increasing transparency, strengthening enforcement and reducing the risk of foreign interference. The bill explicitly adds digital assets to existing political financing rules and would prohibit crypto contributions.

Supporters of the measure contend the change would close a gap in campaign finance rules by addressing the difficulty of tracing some digital-asset transfers and aligning donations with contribution limits and reporting requirements. The bill will now be examined in detail by a parliamentary committee, where amendments can be proposed. No committee start date has been set.

Officials have pointed to transfers routed through digital wallets or offshore services as complicating oversight and increasing the potential for foreign funds to influence campaigns. The restriction targets donations that electoral authorities would find difficult to verify under current rules.

The proposed ban on crypto donations comes while Canadian regulators develop a broader framework for digital assets. Regulators have advanced plans for a national stablecoin framework that would give oversight powers to the Bank of Canada and are refining rules for crypto investment funds, custodians and cold storage practices.

Proponents say those regulatory steps aim to bring digital-asset services more clearly under financial regulation while limiting the use of crypto in areas deemed sensitive to national security and public trust, including elections.

Parliamentary debate on Bill C-25 has focused on enforcement details. Legislators have questioned how electoral authorities would confirm the origin of digital donations, how contribution limits would be enforced for transactions routed through intermediaries, and what penalties would apply for violations. Committee review is expected to address those issues.

If enacted, the ban would join recent regulatory actions integrating digital assets into Canada’s financial system while imposing specific limits on their use in political activity.