Canada Tightens Election Rules: Ban on Crypto Donations and Protection Against Foreign Interference


The Government of Canada has introduced Bill C-25, the Strong and Free Elections Act, which proposes comprehensive amendments to the Canada Elections Act. The legislation aims to counter foreign interference, increase financing transparency, and adapt the electoral system to modern digital challenges.

A key new measure is a ban on donations made in "hard-to-trace" forms. This includes cryptocurrencies, money transfers, and prepaid cards. Lawmakers seek to close channels for anonymous financing that could be used to circumvent existing restrictions.

The bill also restricts the financing of political activities by third parties - such funds may now only come from Canadian citizens or permanent residents.

Administrative penalties for violations of the Canada Elections Act will increase significantly: up to CAD 25,000 for individuals and up to CAD 100,000 for organizations. These measures are intended to create an effective deterrent against potential offenders.

The powers of the Commissioner of Canada Elections will also be expanded - the Commissioner will gain the authority to investigate cases of cross-border financing and misuse of digital tools, including incidents that extend beyond Canada’s borders.

The government will spend CAD 31.5 million over five years to strengthen the Rapid Response Mechanism within Global Affairs Canada. This mechanism will monitor attempts at foreign information manipulation on a 24/7 basis, not only during election periods.

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