Canada Proposes Cryptocurrency Donation Ban to Prevent Foreign Interference

The Canadian government has introduced a new bill aimed at curbing anonymous and hard-to-trace contributions to political parties and election processes. The Strong and Free Elections Act proposes to ban cryptocurrency donations, as well as money orders and prepaid cards, citing concerns over foreign interference and the potential for such funds to bypass traditional oversight.

The bill's sponsor, Steven MacKinnon, emphasized the need to 'block foreign interference and other threats to elections,' while noting that the legislation expands government coordination and investment in countering such risks. The proposed amendments would revise the Canada Elections Act to close a notable loophole around fundraising, explicitly barring political actors from receiving cryptocurrency, money orders, or prepaid cards.

The bill also broadens protections against disinformation by extending the prohibition on realistic political deepfakes that could mislead voters ahead of elections. If enacted, contributions made via any of the banned methods must be returned, destroyed, or delivered to the chief electoral officer, with penalties up to twice the amount contributed plus fixed fines of $25,000 for individuals and $100,000 for corporations.