The federal government is fast-tracking legislation to ban the use of cryptocurrency in Canadian elections, with MPs signalling broad support for new rules aimed at shutting down anonymous political financing.Bill C-25 cleared Second Reading in the House of Commons just weeks after being introduced, with lawmakers from multiple parties backing the move as a safeguard against foreign interference and untraceable donations.Liberal MP Kevin Lamoureux said there is strong cooperation across party lines to push the bill forward, adding the Commons procedure and House affairs committee will now examine the details.The legislation would amend the Canada Elections Act to prohibit the use of cryptocurrencies like Bitcoin in political campaigns, including for advertising, partisan activities and election surveys. Violations could carry fines of up to $100,000.It would also ban other difficult-to-trace payment methods such as prepaid cards and money orders, targeting what the government describes as gaps in the current system that could allow anonymous or foreign funding to influence elections.Conservative MP Kelly Block backed the changes, saying loopholes in political financing rules risk undermining public confidence.“Central to our democracy is the idea and trust that Canadian elections should be and are decided by Canadians,” Block said, warning that foreign actors can exploit third-party channels to influence outcomes..Government House Leader Steven MacKinnon described the bill as a preventive step, acknowledging the scope of the problem is not fully known but insisting action is needed to close potential avenues for abuse.The push comes in the wake of mounting concerns over foreign interference in Canadian politics. A 2024 inquiry found evidence that agents linked to the Chinese Communist Party funnelled roughly $250,000 in illegal contributions to a network of candidates and political staff during the 2019 federal election.According to intelligence briefings prepared for former prime minister Justin Trudeau, foreign actors have been able to operate with limited consequences, exploiting weaknesses in oversight and enforcement.While the report did not detail how those funds were transferred, the government argues banning cryptocurrency and other anonymous payment tools will help close off potential channels for covert influence.If passed, Bill C-25 would mark one of the first federal measures to explicitly prohibit the use of digital currencies in routine political transactions where cash might otherwise be accepted.The bill now heads to committee for further study, where MPs are expected to examine how the new restrictions will be enforced and whether additional safeguards are needed to protect the integrity of Canada’s elections.
