The Canadian federal government has introduced legislation that would prohibit political parties and third parties involved in elections from accepting cryptocurrency donations. The bill, known as the Strong and Free Elections Act, was given its first reading in the House of Commons on Thursday. It also seeks to ban donations made via money orders and prepaid cards, citing concerns over anonymous and difficult-to-trace contributions. The government argues these payment methods could be exploited by foreign actors seeking to interfere in Canadian elections.
Steven MacKinnon, the government’s leader in the House of Commons and the bill’s sponsor, outlined the intent behind the legislation in a statement posted to X on Thursday. He said the measures are designed to block foreign interference and other threats to the integrity of elections. MacKinnon stated that the government is acting to ensure elections remain free, fair, and secure at all times, alongside new investments to counter foreign threats and stronger government coordination.
Canada is not the only country moving in this direction. The United Kingdom government also announced plans on Thursday for a moratorium on cryptocurrency donations, following an independent review and pressure from senior politicians. The parallel announcements reflect a broader international concern about the potential for digital assets to be used to undermine democratic processes.
For the Strong and Free Elections Act to become law, it must pass through several readings and a committee stage in the House of Commons before moving to the Senate. It would then require royal assent from the Governor General of Canada. A comparable bill was put forward in 2024 by Dominic LeBlanc, who was then minister of public safety, but that legislation failed to advance beyond its second reading and ultimately did not pass. Cryptocurrency donations have been permitted in Canadian politics since 2019, where they are treated as non-monetary contributions, similar to property donations.
The push for a ban has been building within official channels. A 2024 report by Stéphane Perrault, the chief electoral officer, recommended prohibiting cryptocurrency in political financing altogether, on the grounds that it poses challenges in identifying contributors. That recommendation appears to have informed the current legislative proposal. Should the bill pass, any contributions made through the banned payment methods would be required to be returned, destroyed, or handed over to the chief electoral officer.
The penalties outlined in the bill are substantial. Violations could result in fines of up to twice the amount of the contribution, plus an additional $25,000 for individuals and $100,000 for corporate entities. The legislation also proposes expanding existing restrictions on realistic deepfakes that impersonate electoral candidates with the intent to mislead voters. The deepfake issue drew significant attention during the lead-up to the 2024 US elections, with one reported case involving a fabricated audio clip of then-President Joe Biden urging voters not to cast ballots.
Originally reported by CoinTelegraph.
