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Canada’s Bill C-25 Advances With Proposed Ban on Bitcoin Political Donations

According to Canada’s House of Commons, Bill C-25 passed second reading and would bar cryptocurrency donations in federal elections, while the Liberal government separately plans a nationwide crypto ATM ban tied to scam and illicit transfer risks.

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Fact Check
The claim is strongly supported by the official government source, Chapter 2: Benefitting Canadians: A Canada for all, which is part of the Spring Economic Update 2026 and states that the update proposes to ban crypto ATMs because they are used for scams and for placing criminal cash proceeds. Crypto ATM ban included in spring fiscal update independently confirms the proposal and adds the detail that Canada has just under 4,000 such machines. The CBC report title and snippet align with both sources, describing the planned ban and the scam-related rationale. The only slight limitation is that the exact 'limited sector-specific rules' wording was not directly verified from the official page fetched here, but the core claim about the planned ban, its inclusion in the spring update, and the scam/illicit-transfer rationale is well supported.
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Summary

Canada is tightening crypto oversight through parallel measures targeting political finance and retail access. Canada’s House of Commons advanced Bill C-25, the Strong and Free Elections Act, by passing second reading and sending it to committee review; the bill would prohibit cryptocurrency donations in federal elections. Earlier reporting said illegal crypto donations would need to be returned within 30 days or, if that is not possible, forfeited to the federal treasury. Separately, according to CBC News, the Liberal government plans a nationwide ban on nearly 4,000 crypto ATMs, citing scam activity, fraud losses, cash laundering, and illicit transfers. Together, the steps point to a broader regulatory push that also includes rules involving stablecoins, crypto funds, custody, and cold storage.

Terms & Concepts
  • Crypto ATM: A machine that allows users to buy, and sometimes sell, cryptocurrency using cash or card payments, often sending assets directly to a digital wallet.
  • Digital asset: A digitally represented asset, such as cryptocurrency, that can be transferred or stored electronically using blockchain-based or related systems.
  • Cold storage: A method of storing crypto assets offline to reduce exposure to hacks and unauthorized online access.