I just noticed something interesting about how governments are tightening their stance on cryptocurrencies in policy. Canada has just taken a significant step with Bill C-25, known as the Strong and Free Elections Act, which aims to completely ban the use of crypto assets like Bitcoin in political campaign donations.

What catches my attention is that the Canadian government is classifying cryptocurrencies alongside other financial instruments as sources of funds that are difficult to trace. The ban would be total: it applies to registered parties, individual candidates, campaign teams, and even third-party political ad publishers. Basically, they are closing any door through which crypto money could enter the electoral system.

If this is approved, illegal cryptocurrency donations received would have to be returned or managed within 30 days. Fines could be quite severe: up to twice the illicit amount plus an additional penalty of up to $100,000. It’s a very clear stance on what they think about the issue.

The curious thing is that Canada has allowed donations in cryptocurrencies since 2019, but hardly anyone used them. In the 2021 elections and even in 2025, there were no records of such donations. However, regulatory authorities have always expressed concerns about the inherent anonymity of cryptocurrencies and how that could affect electoral transparency. Apparently, those concerns have led them to this total ban.

This follows a similar line to what the United Kingdom recently did, clearly focused on preventing foreign funds from seeping into political systems through crypto assets. The bill is still in its first reading in the Canadian parliament, so we’ll see how it progresses. It’s a reminder that cryptocurrency regulation continues to evolve in quite restrictive ways in many jurisdictions.