Canada’s federal government introduced legislation Thursday that would prevent third-party political parties and election groups from accepting elections encryptionand money orders and prepaid cards as political donations.
Bill, called Strong and Free Elections ActIt targets payment methods that officials say are difficult to trace and could be used by foreign actors to transfer money into Canadian politics without detection.
Stephen McKinnon, the government leader in the House of Representatives, said: Sizes Designed to keep elections “free, fair and secure.”
The penalties under the proposed law are significant. Anyone caught flouting the rules could be forced to return the money or destroy it – or hand it over to the chief electoral official.
Furthermore, individuals may face fines of up to $25,000, while businesses could be fined up to $100,000. In either case, violators will also owe up to twice the original amount they contributed.
Today, we are taking concrete steps to better protect our democracy. 🇨🇦
With the introduction of the Strong and Free Elections Act, new investments to confront foreign threats, and stronger government coordination, we are working to ensure our elections remain free, fair, and…
– Stephen MacKinnon (@StephenMacKinnon) March 26, 2026
This is not Canada’s first attempt
This is not the first time Ottawa has pushed for this type of ban. An almost identical bill was introduced in 2024, but it stalled after its second reading in the House of Commons and was never put to a vote. That previous attempt was led by Dominique LeBlanc, who was then Minister of Public Safety.
The current bill follows a recommendation made by Canada’s chief electoral officer, Stephane Perrault, in a 2024 report. Perrault argued that cryptocurrency donations present a unique problem because determining who actually made the contribution is much more difficult than with traditional payment methods.
Cryptocurrencies have been an accepted form of political donation in Canada since 2019, and are treated in the same way as real estate donations under current rules.
For a bill to become law, it must receive multiple readings in the House of Commons, pass through committee, travel through the Senate, and receive royal assent from the Governor General.
Deepfakes are also in the crosshairs
Beyond donation rules, the bill targets content generated by artificial intelligence. It would expand existing constraints on realism Deep fakes Which impersonates election candidates in ways intended to mislead voters.
The issue drew widespread attention during the run-up to the 2024 US election, when a fabricated audio clip showed US President Joe Biden telling voters to stay home on Election Day.
Canada is not acting alone when it comes to cryptocurrency donations. Reports indicate that the UK announced similar plans on the same day, after an independent review and pressure from senior MPs.
The parallel moves indicate growing concern among Western democracies about the role anonymous digital payments could play in influencing elections.
Whether Canada’s bill succeeds where the 2024 version failed will depend on how quickly it moves through Parliament — and whether it has enough support to survive the process this time.
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