The federal government is moving to outlaw the use of bitcoin and other untraceable funds in political campaigns, citing concerns over anonymous and foreign influence. Blacklock's Reporter says cabinet introduced Bill C-25 in the Commons Thursday, which would make using cryptocurrency, money orders, or prepaid cards for partisan activity or election purposes punishable by fines of up to $100,000.Government House Leader Steven MacKinnon said the measures are preventive, noting cabinet is unaware of any suspicious use of digital currency in campaigns. “Canada’s elections belong to Canadians,” MacKinnon said. “Outside money, influence and threats have no place in them. Our new measures will close channels for anonymous and foreign funding and help protect federal elections as well as nomination and leadership contests from undue foreign influence.”The bill would extend prohibitions beyond cryptocurrency to cover any untraceable form of currency or digital payment used in election advertising or surveys. MacKinnon emphasized that the legislation is meant to close potential loopholes, rather than respond to a known problem. “We are trying to be as responsive as we can,” he said. “I think this is most definitely a preventive measure.”.Cryptocurrency has been under federal scrutiny since 2019, when regulations under the Proceeds of Crime and Terrorist Financing Act required traders to report five-figure transactions. Then-Finance Minister Bill Morneau called bitcoin “difficult to understand” and suggested it was not a legitimate form of currency. He warned that crypto-assets are increasingly being used to launder proceeds of crime.A 2022 Department of Finance notice reinforced concerns, noting that digital assets can be exploited to evade government oversight, avoid global sanctions, and fund illegal activities. Bill C-25 marks the first federal legislation that would explicitly block cryptocurrency from campaign use, applying the ban to any transaction where paper currency would otherwise be accepted.
