OTTAWA — Canada’s minority Liberal government introduced legislation Friday that would bar political parties, riding associations and leadership contestants from accepting contributions in bitcoin or any other cryptocurrency, according to a copy of the 142-page bill obtained by SourceRated.
The proposed amendments to the Canada Elections Act were laid before the House of Commons by Democratic Institutions Minister Karina Gould, who said in a statement the move is intended “to increase transparency, protect voters and close emerging loopholes in digital finance.”
Under the draft rules, donations would have to be made in Canadian dollars through traceable instruments such as credit cards or cheques. Individuals who send crypto assets to campaign accounts could face fines of up to C$5,000, while parties that knowingly accept them could see penalties of ten times the illicit amount.
Canada’s initiative follows the United Kingdom, where the Electoral Commission formally capped digital-asset gifts at £50 on March 20 after lawmakers warned that pseudonymous transfers could mask the identity of foreign donors. “London’s decision was a wake-up call,” a senior Canadian official involved in the file told SourceRated on condition of anonymity. “We do not want the next federal vote to become a testing ground for opaque money.”
Cryptocurrency has played only a minor role in previous Canadian races: Elections Canada data show digital tokens represented less than 0.5 percent of declared contributions in 2021. Still, analysts say the figure may understate activity because most coins fluctuate in value and can move across borders undetected. “Once an asset is tokenised, it becomes harder for regulators to follow, especially if it jumps chains or is routed through mixers,” said Alex Kervin, a compliance researcher at Carleton University.
The bill must still pass the House of Commons and the Senate, where opposition Conservatives have not indicated whether they will support the measure. Conservative leader Pierre Poilievre has championed bitcoin in the past, but a party spokesperson said Friday that MPs would “study the text carefully with the goal of protecting both privacy and integrity.”
If approved this spring, Elections Canada would have 18 months to draft implementing regulations, meaning the ban could take effect ahead of the scheduled 2027 general election. Market observers expect provinces to examine similar curbs once federal standards are in place.
“We’re seeing a global convergence toward treating crypto like cash—highly convenient, but also highly regulated when it touches politics,” said Julia Chiang, a Toronto-based policy analyst. “Canada doesn’t want to be the soft spot on the map.”