Canada moves on crypto donations

Bill C‑25, tabled March 26, 2026 as the Strong and Free Elections Act, explicitly classifies cryptocurrencies alongside money orders and prepaid payment products and applies to registered parties, riding associations, candidates, leadership and nomination contestants, and third parties running election advertising. (coindesk.com) The draft legislation would impose penalties that include disgorgement equal to twice the value of an illicit contribution and corporate fines up to $100,000 for contraventions described in the bill’s enforcement provisions. (blockonomi.com) Canada’s move follows repeated warnings from the Chief Electoral Officer about auditability risks, and federal practice since 2019 had treated crypto donations as non‑monetary contributions with no major federal party reporting crypto receipts in the 2021 or 2025 campaigns. (cryptonews.net) The change arrives after the UK’s Rycroft review (published March 25, 2026) recommended a moratorium on crypto political donations and the UK government announced an immediate moratorium plus a cap on gifts from overseas electors to reduce foreign‑funding risk. (gov.uk) The Canada Revenue Agency classifies crypto‑assets as digital property and maintains public guidance on capital gains versus income treatment, record‑keeping expectations, and reporting responsibilities for crypto transactions. (canada.ca) Tax advisers and law firms note that token‑based compensation remains an evolving tax area—tokens issued as employee or contractor rewards can be treated as employment or business income rather than capital gains—and growing automatic reporting from exchanges increases the likelihood of CRA audits if records are incomplete. (lowenstein.com) ( mackisen.com )