Canada seeks to block crypto donations to safeguard elections from foreign threats, with new penalties for violations.
Canada's federal government introduced the Strong and Free Elections Act on Thursday, proposing a ban on cryptocurrency donations to political parties and third parties involved in elections. The measure aims to curb foreign interference by preventing anonymous and hard-to-trace contributions through crypto, money orders, and prepaid cards.
The bill, sponsored by Steven MacKinnon, the leader of the government in the House of Commons, seeks to amend the Canada Elections Act. MacKinnon stated that the changes will strengthen election security against foreign threats, ensuring fair and secure voting processes.
Background and Previous Attempts
A similar bill was proposed in 2024 by Dominic LeBlanc, then minister of public safety, but it failed to advance past the second reading in the House of Commons. Crypto donations have been allowed in Canada since 2019, treated as property donations, but a 2024 report by Chief Electoral Officer Stéphane Perrault recommended a ban due to difficulties in identifying contributors.
The United Kingdom announced its own plans for a moratorium on crypto donations on the same day, following an independent review and pressure from politicians, highlighting a broader international concern over election interference.
If passed, the legislation would require any prohibited contributions to be returned, destroyed, or handed over to the chief electoral officer. Violators could face penalties of up to twice the amount contributed, plus fines of $25,000 for individuals and $100,000 for corporations.
The bill also expands existing bans on realistic deepfakes that impersonate electoral candidates to mislead voters, drawing attention from incidents like those in the 2024 U.S. elections. This multifaceted approach underscores efforts to protect democratic processes from emerging technological risks.
