Canada’s crypto donation ban clears key vote with support from Conservatives

Canada’s proposed ban on crypto political donations moved a step closer to becoming law on Friday, advancing through Parliament with cross-party support and little opposition.

Bill C-25, the Strong and Free Elections Act, passed second reading in the House of Commons and was referred to committee for further review. In Canada’s system, that vote signals lawmakers broadly agree with a bill’s core principles before it faces detailed scrutiny and possible amendments.

The legislation would prohibit political contributions made in crypto, alongside money orders and prepaid payment products, grouping them as funding methods that are difficult to trace.

The ban would apply across the federal system — registered parties, electoral district associations, candidates, leadership and nomination contestants, and third parties that run election advertising.

Recipients would have 30 days to return illegal crypto contributions or remit them to the Receiver General, Canada's equivalent of the U.S. Treasury.

The bill’s lead defender on the floor was Kevin Lamoureux, the Liberal parliamentary secretary to the government’s House leader, a junior official who helps manage the ruling party’s legislative agenda and acts as a floor spokesperson during debate.

His opening speech walked through AI deepfakes, foreign interference, and administrative penalties. Crypto did not come up, according to an official transcript. Asked by a Liberal colleague to pick from three priorities — foreign interference in nominations, political financing transparency or artificial intelligence — Lamoureux picked AI.

Several Conservative Members of Parliament — the party is led by Pierre Poilievre, who marketed himself as crypto-friendly during the last election — raised questions about political financing rules and how new restrictions would be applied.

But the issue never became a central point of contention.

Conservatives backed sending the bill to committee, while other opposition parties raised concerns about different elements of the legislation, but did not center their arguments on crypto.

The limited resistance also reflects how little crypto has been used in Canadian politics.

Canada has technically allowed crypto donations since 2019, when Elections Canada classified them as non-cash, in-kind contributions similar to property. But no major federal party has publicly accepted crypto, and no contributions have been disclosed in recent elections.