Crypto Donations Face Ban As Canada Tightens Election Security Measures
Canada’s federal government introduced legislation Thursday that will ban 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, focuses on ways to pay officials that are difficult to track and can be used by foreign actors to inject money into Canadian politics without detection.
Steven MacKinnon, the government’s House leader, said the measures were designed to keep elections “free, fair and secure.”
The penalties under the proposed law are significant. Anyone caught breaking the rules can be forced to return or destroy the money – or give it to the chief electoral officer.
In addition, individuals can face fines of up to $25,000, while corporations can be hit with penalties of up to $100,000. In both cases, violators will owe twice the original amount contributed.
Today, we are taking strong steps to better protect our democracy. 🇨🇦
With the introduction of the Free and Robust Elections Act, new investments to combat foreign threats, and strong government engagement we are working to ensure that our elections remain free, fair, and…
– Steven MacKinnon (@stevenmackinnon) March 26, 2026
It’s Not Canada’s First Attempt
This is not the first time Ottawa has pushed this type of ban. A nearly identical bill was introduced in 2024, but stalled after its second reading in the House of Commons and was not voted on. That earlier effort was led by Dominic LeBlanc, who at the time served as minister of public safety.
The current bill follows a recommendation made by Canada’s chief electoral officer, Stéphane Perrault, in the 2024 report. Perrault argued that crypto donations present a unique problem because identifying who actually made the donation is more difficult than traditional payment methods.
Crypto is an acceptable form of political donation in Canada as of 2019, treated in the same way as property donations under existing laws.
To become law, the bill must clear multiple readings in the House of Commons, pass a committee, pass the Senate, and receive royal assent from the Governor General.
Deepfakes And In The Crosshairs
Beyond donation rules, the bill aims at AI-generated content. It will expand existing restrictions on virtual reality deepfakes that impersonate candidates in ways intended to mislead voters.
The issue has attracted the attention of many people in the run-up to the 2024 US election, when an audio clip was created showing US President Joe Biden telling voters to stay home on election day.
Canada is not alone in its crypto offerings. Reports indicate that the UK announced similar plans on the same day, following an independent review and pressure from senior members of parliament.
Similar moves raise growing concerns among Western democracies about the role digital payments could play in influencing elections.
Whether Canada’s bill succeeds where the 2024 version failed will depend on how quickly it passes through parliament — and whether it has enough support to survive the process this time.
Featured image from Unsplash, chart from TradingView
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