Canada's 'Free and Strong Elections Act' Passes Second Reading in House... Pushing for Total Ban on Crypto Donations in Politics

On April 22, 2026, the Canadian House of Commons passed the second reading of the 'Free and Strong Elections Act (Bill C-25),' effectively ending the era of cryptocurrency donations in federal politics. The bill, passed with 168 votes in favor and 150 against, is the result of an unusual consensus between the Liberal government and the Conservative opposition regarding the risks of anonymous digital assets to the democratic process.

This legislative measure represents a significant change in election financing regulations and aims to address threats to election integrity that Elections Canada has warned about for years. The bill has now been referred to a standing committee for detailed review, and upon final passage, the influence of digital assets on the Canadian political landscape is expected to shrink significantly.

Bill C-25 passed the House threshold under the official name 'Free and Strong Elections Act.' In the vote held on April 22, 2026, Members of Parliament approved the second reading of the bill with 168 votes in favor and 150 against, while 18 members did not participate in the vote. Currently, the bill has been referred to a standing committee for further study and deliberation on specific clauses.

Cryptocurrency donations are difficult to track and offer anonymity, posing a high risk of becoming channels for foreign interference or money laundering. To protect the integrity of elections, it is essential to preemptively block these digital loopholes. — Summary of Elections Canada and Rycroft Review Reports

This ban is not limited to cryptocurrencies like Bitcoin but covers various financial instruments that are difficult to trace. Once the bill is fully implemented, the flow of political funds in Canada is expected to be more strictly controlled, reflecting civil society's demand for transparent disclosure of the sources of election funding.

Closing Digital Loopholes: Targets and Scope of the Ban

Bill C-25 focuses on fundamentally blocking opaque fund flows used for the purpose of exerting political influence. The ban applies broadly not only to registered parties but also to electoral district associations, candidates, leadership contestants, and third-party advertisers.

• All types of cryptocurrencies, including Bitcoin and Ethereum
• Hard-to-trace money orders
• Anonymous prepaid payment cards

In the past, Canada has taken a relatively lenient stance on cryptocurrency donations. According to regulations introduced in 2019, cryptocurrencies were considered non-monetary contributions, with disclosure requirements only for amounts exceeding $200. However, with the push for Bill C-25 following Bill C-65, which was scrapped due to the dissolution of Parliament in early 2025, Canada has completely pivoted its policy direction from permission to prohibition.

A particularly noteworthy aspect of this bill's passage is the change in the Conservative Party's stance. In the past, the Conservatives had taken a pro-crypto approach, supporting bills like C-249 that encouraged the growth of the cryptocurrency industry. However, this time they voted for stricter regulation under the pretext of protecting the 'integrity' of the ballot box. This suggests that concerns about cryptocurrency being misused as a political tool have transcended partisan interests.

Canada's move aligns with international regulatory trends. Following the UK's recent decision to restrict the use of cryptocurrency in election campaigns, Canada is also showing a commitment to securing election fund transparency at the level of major advanced nations. Transparency advocacy groups are welcoming the ban as a key election management measure where 'prevention is more important than cure.'

On the other hand, some in the cryptocurrency industry are expressing concern that this measure denies the innovative value of digital assets and narrows the channels for political participation. Nevertheless, the Liberal government led by Prime Minister Mark Carney prioritizes securing election integrity, making the final passage of the bill highly likely.

As of April 28, 2026, Bill C-25 is in the committee review stage and will subsequently undergo a third reading for final legislative procedures. Discussions on detailed enforcement rules and exceptions are expected during the committee deliberation process, and Canadian political circles expect this bill to become a cornerstone for ensuring the fairness of the next election.