Canada has moved a step closer to banning cryptocurrency donations in political campaigns after lawmakers advanced new election rules.

According to the House of Commons of Canada, Bill C-25, known as the Strong and Free Elections Act, has passed its second reading, allowing detailed examination at the committee stage where amendments remain possible.

Introduced on March 26, the proposed law would prohibit political parties and candidates from accepting crypto contributions, addressing what Canadian regulators have identified as a gap in existing campaign finance controls.

“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,” Steven MacKinnon, the government House leader and sponsor of the bill, said at the time.

Lawmakers backing the bill have linked the restriction to concerns over traceability and compliance with donation limits, issues that have drawn increasing scrutiny as digital assets enter political funding channels.

As previously covered on Invezz, concerns around crypto-linked political funding have also surfaced in the UK, where the Joint Committee on the National Security Strategy warned in a March report that digital assets “present an avoidable risk” to political finance systems.

The committee stated that cryptocurrencies can make it harder to trace the origin of funds, raising the possibility of foreign actors influencing domestic politics, and recommended a temporary ban until clearer rules are introduced.

Canadian policymakers have not proposed a temporary measure but have instead embedded crypto restrictions directly into a wider overhaul of election laws, which includes measures to improve transparency, strengthen enforcement, and reduce exposure to foreign interference.

No timeline has been set for when Bill C-25 will be reviewed in committee.

This, however, is not Canada’s first attempt to bar political crypto donations.

Back in 2024, a similar proposal was introduced by Dominic LeBlanc, but it failed to advance after lawmakers did not carry it through the legislative process, leaving the issue unresolved at the time.

At the same time, Canadian authorities have been expanding oversight of digital assets across the financial system.

Regulators have advanced frameworks for stablecoins that would place them under the supervision of the Bank of Canada, while also refining standards for crypto investment funds, custodians, and cold storage practices.

These developments are unfolding under Prime Minister Mark Carney, a former central banker who has previously expressed skepticism about cryptocurrencies, even as policymakers move to integrate digital assets into regulated financial infrastructure while limiting their role in sensitive areas such as elections.

The post Canada advances Bill C-25 to ban political crypto donations appeared first on Invezz

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