Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Bill C-25 Blocks Crypto And Opaque Election Funding
Mar 30, 2026 | NCFA Insight | Regulation And Policy, Digital Assets
Canada Tightens Election Funding Controls
On Mar 26, 2026, Bill C-25 was introduced to amend the Canada Elections Act (download 45 page Bill C-25 PDF). The bill blocks third parties from accepting contributions made in cryptoassets, prepaid payment products, or money orders for partisan activity, election advertising, or surveys. If received, those funds must be returned, destroyed, or converted and handed to the Receiver General.
See: US Financial Surveillance Report Shows Privacy in Crisis
Anonymous contributions are prohibited. Foreign sourced funds, property, and services are prohibited. Regulated expenses must be funded by Canadian individuals, with a limited exception allowing a third party to use its own funds only when prior year contributions are 10% or less of revenue. Disclosure also tightens. Once a contributor exceeds $200, reporting must include name, address, amount, and timing.
In practice, this closes most of the remaining paths for political money that cannot be clearly attributed.
Traceability Sets The Standard
The bill does not regulate crypto markets. It removes funding methods that make source of funds and identity harder to verify. Crypto sits alongside instruments that break clean audit trails.
This is consistent with how Canadian regulators already handle higher risk flows. When identity or intent cannot be confirmed, access gets restricted. That same pressure showed up in rules applied to donation crowdfunding platforms and in guidance on bitcoin ATMs, where operators are expected to treat even smaller transactions within a broader AML framework.
Political finance applies that standard without exception.
Where This Hits
This is a political funding rule, and doesn't apply to general payments or everyday crypto use.
See: NCFA Response to FINTRAC’s ‘Knee Jerk’ Regulations Requiring Donation Crowdfunding Platforms to Register and Comply with AML/ATF Legislation
It does show how regulators act when attribution cannot be optional. Funding must be tied to identifiable sources, supported by records, and capable of audit.
Failures to meet that bar already carry real consequences. Major AML breakdowns at large institutions and advances in detection, including AI driven money laundering techniques and shell company structures, show how quickly expectations are rising.
Takeaway
Bill C-25 is focused on political funding. Money used in elections must be attributable, traceable, and tied to identifiable Canadian sources. Fintech and financial institutions dealing with Canadian election flows must be able to prove who sent the money, where it came from, and how it moved, otherwise they'll soon be under pressure.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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