Canada Proposes Stricter Rules on Political Donations Including Cryptocurrency

The Canadian government has introduced a proposed amendment to the Canada Elections Act (CEA) aimed at tightening rules on political financing methods. The Strong and Free Elections Act would restrict parties and third parties from accepting donations in forms that are difficult to trace, including cryptocurrency, money orders, and prepaid cards.

The proposal would require third-party political activity funding to come from Canadian citizens or permanent residents, except for minimal donations. This change is intended to increase transparency and accountability in the financing of election activities.

The bill also includes provisions for stricter privacy and vendor safeguards for party-held personal data and raises administrative monetary penalties to deter illicit finance. The maximum fines proposed are $25,000 for individuals and $100,000 for organizations.