New legislation introduced by Canada’s federal government aims to prohibit political parties and third-party election groups from accepting cryptocurrency, money orders, and prepaid cards as donations.
The Strong and Free Elections Act, as the bill is called, specifically targets payment methods that are deemed difficult to track and could potentially be exploited by foreign entities to inject funds into Canadian politics without detection.
Steven MacKinnon, the government’s House leader, emphasized that these measures are crucial to maintaining the integrity and security of elections.
The penalties outlined in the proposed law are substantial. Violators may be required to return or dispose of the funds or surrender them to the chief electoral officer. Additionally, individuals could face fines up to $25,000, while corporations could incur penalties as high as $100,000. In both cases, offenders may also be liable for up to double the original donation amount.
Today, we are taking concrete steps to better protect our democracy. 🇨🇦
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…
— Steven MacKinnon (@stevenmackinnon) March 26, 2026
History of Legislation
This is not the first instance where Ottawa has pursued such a ban. A similar bill was introduced in 2024 but stalled after the second reading in the House of Commons, failing to progress to a vote. The previous attempt was spearheaded by Dominic LeBlanc, the then-minister of public safety.
The current bill aligns with a recommendation made by Canada’s chief electoral officer, Stéphane Perrault, in a 2024 report. Perrault highlighted the unique challenge posed by cryptocurrency donations, as identifying the true source of such contributions is significantly more complex compared to traditional payment methods.
Cryptocurrency has been recognized as a valid form of political donation in Canada since 2019, treated similarly to property donations under existing regulations.
To become law, the bill must undergo multiple readings in the House of Commons, navigate through committee reviews, progress in the Senate, and ultimately receive approval from the Governor General.
Combatting Deepfakes
In addition to donation regulations, the bill addresses AI-generated content, particularly focusing on realistic deepfakes that impersonate election candidates with the intention of misleading voters.
This issue gained considerable attention during the 2024 US elections, where a fabricated audio clip depicted US President Joe Biden instructing voters to abstain from voting on election day.
Canada is not alone in its stance on crypto donations. Reports indicate that the UK announced similar measures on the same day, following an independent review and pressure from senior parliamentary members.
These concurrent actions underscore the mounting concern among Western democracies regarding the potential influence of anonymous digital payments on electoral processes.
Success of Canada’s bill, where the 2024 version faltered, hinges on its progress through parliament and the level of support it garners during the legislative process.
Featured image from Unsplash, chart from TradingView
The editorial process at bitcoinist is dedicated to delivering meticulously researched, accurate, and impartial content. We adhere to rigorous sourcing standards, with each page subjected to thorough review by our team of leading technology experts and seasoned editors. This rigorous process ensures the integrity, relevance, and value of our content for our audience.
Be the first to comment