Canada’s federal government has put forward a proposal to prohibit cryptocurrency donations for political campaigns, highlighting worries that foreign parties might misuse digital currencies to meddle in electoral processes.

This bill, known as the Strong and Free Elections Act, was introduced on Thursday and seeks to revise the Canada Elections Act to ban political parties and third parties involved in elections from receiving crypto, money orders, and prepaid cards. This measure aims to eliminate anonymous contributions that are difficult to trace.

The bill’s advocate, Steven MacKinnon, the Government House Leader, mentioned on Thursday that these initiatives are designed to prevent foreign meddling and other electoral threats. “With the rollout of the Strong and Free Elections Act, enhanced investments to counter foreign dangers and improved government teamwork, we are taking steps to guarantee that our elections remain free, fair, and secure at all times,” he stated.

Canada isn’t the only country voicing such concerns; the UK government also revealed plans for a ban on crypto donations on the same day, following an independent evaluation and urging from high-ranking politicians.

Previous Attempts at Banning Crypto Donations

The Strong and Free Elections Act had its initial reading in the House of Commons on Thursday. For the bill to be enacted, it must navigate through several readings and committee evaluations, pass through the Senate, and reach the Governor General for royal assent.

A similar initiative was put forth in 2024 by Dominic LeBlanc, who was then the Minister of Public Safety, but it failed to move past the second reading in the House of Commons and eventually was abandoned.

Since 2019, crypto political donations have been sanctioned in Canada and are treated like property donations. However, a report from 2024 by Stéphane Perrault, the Chief Electoral Officer, advocated for a complete ban on crypto political donations, citing challenges in identifying contributors.

Potential Penalties

If this proposed legislation becomes law, contributions made using any of the prohibited payment methods must be returned, destroyed, or turned over to the Chief Electoral Officer. Penalties for infractions could involve amounts up to double the contribution, as well as Fines of CAD 25,000 (approximately $18,000) for individuals, and CAD 100,000 (around $72,000) for corporations.

The bill also proposes extending current bans on realistic deepfakes that impersonate election candidates to mislead voters. This issue gained prominence leading up to the 2024 US elections, with an instance reported of a deepfake involving then-President Biden urging voters not to partake.