Canada's Parliament has advanced legislation to prohibit political donations made with cryptocurrencies, marking a significant step toward tighter election finance controls. Bill C-25, dubbed the 'Strengthening and Free Elections Act,' passed its second reading with broad cross-party support and now proceeds to committee review.

The bill extends beyond digital assets, banning hard-to-trace instruments like wire transfers and prepaid cards. Political entities must return unauthorized crypto contributions within 30 days or remit them to the state treasury. While crypto donations have been legally permissible since 2019, no major federal party has accepted them, and none were reported in recent elections.

Liberal Party representative Kevin Lamoureux championed the bill, framing it as part of broader electoral integrity measures addressing AI-generated misinformation and foreign interference. The move aligns with global trends of increasing scrutiny on cryptocurrency's role in political financing.