Canada proposes crypto donations ban in elections-security push

Canada’s “Strong and Free Elections Act” proposes a crypto donations ban, barring political parties and third parties from accepting hard-to-trace donations such as cryptocurrency, money orders, and prepaid cards. The bill, backed by the Liberal Party and sponsored by Steven MacKinnon, frames the change as election-security protection against “evolving threats” and foreign interference, drawing on recommendations from Canada’s PIFI inquiry. The act also adds broader safeguards: tighter enforcement of the Canada Elections Act, measures to address unduly long ballots, stronger physical security, expanded offences for realistic deepfakes (with a parody/satire exception), and penalties for knowingly spreading false or misleading election or voting-process information (good-faith and satire exceptions). The proposal follows the UK’s emergency step to pause digital-asset donations to political parties. If Canada and the UK move to permanent limits, they would join jurisdictions that already cap or restrict digital-asset political giving. For traders, this is mainly a compliance/regulatory headline rather than a direct market-structure change. However, the crypto donations ban could reinforce expectations of tighter controls on crypto flows into politically exposed channels, shaping short-term sentiment around regulation risk—while Canada’s prior posture has been relatively measured (e.g., a spot Bitcoin ETF approval in 2021 and progress on stablecoin regulation via the Canada Stablecoin Act).