Keep up with the UK! Canada is considering banning cryptocurrency political donations and is also issuing rules for deepfake videos

Canada proposed Bill C-25, which would fully ban political parties from accepting cryptocurrency donations, increase penalties, and crack down on Deepfakes in response to concerns about foreign interference.

Strengthening election fairness: The government advances the “Fair and Free Elections Act”

On March 26, 2026, the federal government officially took action, with House leader Steven MacKinnon introducing Bill C-25, titled the “Strong and Free Elections Act.” The bill aims to amend the existing Canada Elections Act by completely prohibiting political parties, candidates, and third-party organizations involved in election activities from accepting cryptocurrency donations.

In addition to digital assets such as Bitcoin ($BTC), the bill also includes money orders and prepaid cards in the list of prohibited payment methods, categorizing these as anonymous tools that are difficult to trace.

MacKinnon stated that this legislative measure responds to recommendations from public consultations regarding foreign interference in federal elections. By blocking anonymous donation channels, the government seeks to ensure that Canada’s electoral system remains free, fair, and secure.

A significant shift in regulatory stance: from regulation to outright prohibition

Canada’s approach to cryptocurrency political donations has undergone a key change. Since 2019, Canada has permitted political entities to accept cryptocurrency donations, initially treating them as non-cash, property-like contributions.

However, in the past two federal elections, there was almost no practical use of this channel. Records from the 2021 and 2025 elections show that major parties did not report any such donations. Cryptocurrency donations cannot generate tax receipts, causing donors to lose tax benefits—this is the main reason the channel has been largely unused. The chief electoral officer, Stéphane Perrault, initially advocated for tighter regulation to manage these assets, but by the end of 2024, he shifted to recommending a complete ban.

He emphasized that the pseudo-anonymous nature of cryptocurrencies makes it fundamentally difficult to verify the true identity of donors, making transparency unattainable under the current regulatory framework.

Establishing strict penalties: preventing funding black holes and AI forgery

Bill C-25 establishes strict enforcement procedures and penalties. It is a reintroduction of Bill C-65, which lapsed in 2024 due to parliamentary prorogation. The new bill stipulates that if a political entity receives illegal cryptocurrency donations, it must return, destroy, or cash out and remit the funds within 30 days. To enhance deterrence, the bill significantly increases the maximum fines.

Fines for illegal donations can be up to twice the donation amount. The maximum fine for individuals has increased from 1,500 CAD to 25,000 CAD, and for organizations from 5,000 CAD to 100,000 CAD. Additionally, the bill expands regulation into the tech industry, strictly prohibiting the use of Deepfakes technology to produce misleading videos or audio aimed at influencing voters. This amendment draws on incidents of forged presidential images during the 2024 election cycle, aiming to prevent emerging technologies from becoming loopholes for foreign interference.

Divergent international regulatory environments: policy conflicts among Canada, the UK, and the U.S.

Canada’s legislative actions resonate with international trends, with the timing closely overlapping with the UK. The day before Canada introduced the bill, the UK Prime Minister, Keir Starmer, announced a pause on political parties accepting cryptocurrency donations, both viewing this as a safeguard against illegal funding and foreign infiltration.

In contrast, U.S. policy shows a markedly different approach. The Federal Election Commission (FEC) has permitted cryptocurrency donations since 2014. During the 2024 election cycle, super PACs supported by the crypto industry, such as Fairshake, raised over 200 million CAD, becoming a significant influence on the race.

The defensive legislation adopted by Canada and the UK reflects notable differences in how governments balance transparency and security concerns regarding technological interference in politics—each country is pursuing different regulatory paths.

This article is compiled by a crypto Agent from multiple sources and reviewed and edited by 《Crypto City》. It is still in the training stage and may contain logical biases or inaccuracies. The content is for informational purposes only and should not be considered investment advice.