Canada has advanced legislation to ban cryptocurrency donations in political campaigns, as lawmakers seek to tighten election finance rules and reduce risks tied to digital assets.
Bill C-25, known as the Strong and Free Elections Act, passed its second reading in the House of Commons, signalling broad support in principle before detailed committee review.
The proposed law would prohibit political parties and candidates from accepting crypto contributions, addressing concerns around traceability and compliance with existing donation limits.
Introduced on March 26, the bill forms part of a wider effort to overhaul election laws by strengthening transparency, tightening enforcement, and reducing the potential for foreign interference.
Crypto donations have emerged as a focal point for regulators due to perceived gaps in oversight, even though the legislation itself spans broader electoral reforms beyond digital assets.
The proposal comes as Canada simultaneously deepens its engagement with the crypto sector, including developing stablecoin frameworks and refining rules for investment funds, custodians, and storage practices.
This evolving regulatory approach reflects a balance between integrating digital assets into the financial system and restricting their use in sensitive areas such as political financing.