Canada’s federal government has proposed a total ban on cryptocurrency donations to political parties, saying the technology could be used by foreign actors to interfere in elections.
The Strong and Free Elections Act, introduced on Thursday, would amend the Canada Elections Act to bar political parties and third parties from accepting donations in cryptocurrency, money orders and prepaid cards, aiming to prevent anonymous or hard-to-trace contributions.
House leader Steven MacKinnon, the bill’s sponsor, said the measures are designed to block foreign interference and other threats to the electoral process. “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.
The move follows similar action abroad: the UK government announced plans for a moratorium on crypto donations on the same day, after an independent review and pressure from senior politicians.
First attempt at banning crypto donations failed
The Strong and Free Elections Act had its first reading in the House of Commons on Thursday. For it to become law it must pass further readings, a committee stage in the House, then the Senate before receiving royal assent from the Governor General.
A comparable bill introduced in 2024 by then-public safety minister Dominic LeBlanc failed to pass the second reading in the House of Commons and subsequently died. Crypto donations have been permitted in Canada since 2019 and are treated like property donations.
A 2024 report by Stéphane Perrault, the chief electoral officer, recommended banning crypto political donations because they “pose challenges in identifying a contributor.”
Penalties could be up to twice the amount contributed
If enacted, contributions made using banned payment methods would have to be returned, destroyed or delivered to the chief electoral officer. Penalties for breaching the prohibition could include fines up to twice the amount contributed, plus $25,000 for individuals and $100,000 for corporate entities.
The bill would also expand prohibitions on realistic deepfakes that impersonate electoral candidates to mislead voters. Concern over deepfakes rose during the run-up to the 2024 U.S. elections, including a reported case of a manipulated clip of then-President Biden urging voters not to participate.
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