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Canada Moves to Ban Crypto and Prepaid Donations in Federal Campaigns

Officials frame the bill as a preemptive step to close hard-to-trace funding channels.

Overview

  • Bill C-25, introduced in the House of Commons on Thursday, would outlaw political donations made in cryptocurrencies, money orders, and prepaid cards across federal elections.
  • The ban would apply to registered parties, riding associations, candidates, leadership and nomination contestants, and third-party election advertisers.
  • Any prohibited contribution received would have to be returned, destroyed, or converted within 30 days, with any proceeds from conversion sent to the Receiver General.
  • Proposed penalties include administrative charges up to twice the donation’s value and fines up to $25,000 for individuals and $100,000 for corporations.
  • The measure follows the Chief Electoral Officer’s call for a ban and the U.K.’s new moratorium, while the U.S. still allows crypto donations, and Canada’s parties have disclosed no crypto gifts since they were permitted in 2019.