Canada Tightens Campaign Finance Rules with Cryptocurrency Donation Ban

Canadian authorities have taken a step towards regulating the use of cryptocurrencies in politics. The introduction of Bill C-25 marks a shift from previous policies that allowed limited cryptocurrency contributions under strict conditions.

The proposed bill prohibits registered parties, candidates, leadership, and nomination contests from accepting cryptocurrency donations. Additionally, third-party advertisers will also be subject to these restrictions.

According to officials, the main reasons for restricting crypto donations are concerns over traceability and foreign interference risks. Pseudo-anonymous blockchain transactions make it difficult to verify the true source of funds, which raises these concerns.

The bill requires that any prohibited donation must be returned, destroyed, or converted and forwarded to the Receiver General within 30 days. Enforcement includes fines of up to twice the illegal contribution's value, reaching CA$25,000 for individuals and CA$100,000 for corporations.