Canada bans crypto political donations under Bill C-25, following UK action to stop foreign interference and improve funding transparency.
Canada has moved to ban cryptocurrency donations in political campaigns. The decision follows similar action by the United Kingdom just a day before. Therefore, both countries intend to secure elections against clandestine funding from foreign countries and unclear money sources.
Canada Introduces Strict Bill C-25 to Block Unclear Political Funding
On 26 March 2026, the Canadian government proposed a bill titled the Strong and Free Elections Act, Bill C-25. This bill is aimed at sources of funding that are difficult to track. It includes cryptocurrencies such as Bitcoin, money orders and prepaid payment products.
Moreover, the bill applies to a large number of political groups. These include parties, candidates, leadership contestants and third parties. As a result, the law regulates the vast majority of election-related funding channels. The government believes that such a wide scope will minimize risks.
Related Reading: Britain Suspends Crypto Political Donations Over Regulation Concerns | Live Bitcoin News
Also, the bill includes strict timelines for the handling of illegal funds. Recipients are required to take action within 30 days of such contributions. They have to bring them back, destroy or convert the money, and send them to the authorities. This is to ensure that there is quick action in cases of violation of this rule.
Furthermore, penalties under the bill are high. Organizations can be fined up to $100,000. In some cases, penalties can amount to double the value of the illegal contribution. Therefore, it is very strong in the law for the misuse of funds.
Interestingly, since 2019, cryptocurrency donations have been permitted in Canada. However, there are reports that they were not used very often in actual elections. This implies that the ban is more about the future risks and less about the past problems. The bill document can be accessed on the official Parliament website.
UK Imposes Immediate Ban After Foreign Interference Review Findings
Meanwhile, the United Kingdom did not hesitate at once and imposed a ban. On 25 March 2026, Prime Minister Keir Starmer announced a moratorium on crypto donations. This decision was a result of the Rycroft review on foreign interference.
Importantly, the UK ban went into force immediately. It was also applicable to donations received on the same date. Therefore, political parties were forced to stop accepting crypto funds at one go. This sudden move demonstrated great concern over secret funding sources.
The ban was primarily directed at Reform UK, which was known to accept crypto donations. Reports say it received anywhere from $3 million to 12 million. As a result, the policy has a direct impact on those parties using such methods of funding.
In addition, another financial rule was introduced in the UK. Citizens living abroad now can only make donations of up to 100,000 (GBP) pounds a year. This step is to restrict the foreign influence by legal donations. Together, these measures contribute to election transparency.
Moreover, the two countries have similar goals. They want to protect democracy from interference by foreigners and hidden money. Although crypto donations were not much used, there are still risks. Therefore, these laws are preventive measures for safer elections.
Finally, these changes may prompt other nations to act similarly. Governments across the globe are paying close attention. As digital assets increase, election laws could become more stringent. This trend reflects growing attention to the goal of secure and transparent political funding systems.
