Crypto Donations Face Ban As Canada Steps Up Election Security Measures

Canada’s federal government introduced legislation Thursday that would bar political parties and third-party election groups from accepting crypto, money orders, and prepaid cards as political donations.

The bill, called the Strong and Free Elections Act, targets payment methods that officials say are difficult to trace and could be used by foreign actors to funnel money into Canadian politics without detection.

Steven MacKinnon, the government’s House leader, said the measures are designed to keep elections “free, fair and secure.”

The penalties under the proposed law are significant. Anyone caught violating the rules could be forced to return or destroy the funds — or hand them over to the chief electoral officer.

On top of that, individuals could face fines of up to $25,000, while corporations could be hit with penalties as high as $100,000. In both cases, violators would also owe up to twice the original amount contributed.

Not Canada’s First Try

This isn’t the first time Ottawa has pushed for this kind of ban. A nearly identical bill was introduced in 2024, but it stalled after its second reading in the House of Commons and never made it to a vote. That earlier attempt was led by Dominic LeBlanc, who was then serving as minister of public safety.

The current bill follows a recommendation made by Canada’s chief electoral officer, Stéphane Perrault, in a 2024 report. Perrault argued that crypto donations present a unique problem because identifying who actually made the contribution is far harder than with conventional payment methods.

Crypto has been an accepted form of political donation in Canada since 2019, treated much the same way as property donations under existing rules.

To become law, the bill must clear multiple readings in the House of Commons, pass through committee, move through the Senate, and receive royal assent from the Governor General.

Deepfakes Also In The Crosshairs

Beyond the donation rules, the bill takes aim at AI-generated content. It would expand existing restrictions on realistic deepfakes that impersonate election candidates in ways meant to mislead voters.

The issue drew widespread attention during the lead-up to the 2024 US elections, when a fabricated audio clip depicted US President Joe Biden telling voters to stay home on election day.

Canada is not acting alone on crypto donations. Reports indicate the UK announced similar plans the same day, following an independent review and pressure from senior members of parliament.

The parallel moves suggest growing concern among Western democracies about the role anonymous digital payments could play in influencing elections.

Whether Canada’s bill succeeds where the 2024 version failed will depend on how quickly it moves through parliament — and whether it has enough support to survive the process this time.

Featured image from Unsplash, chart from TradingView