Canada’s legislative proposal targets cryptocurrencies in elections
Canada has taken an important step in regulating cryptocurrencies, but with a focus on one aspect less discussed in Brazil: the use of digital currencies in elections. In a proposal recently announced, the Canadian government has suggested a ban on political donations made in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and other altcoins. The measure, presented as a way to protect the integrity of elections, seeks to avoid foreign interference and money laundering through digital currencies.
According to the bill, the justification is clear: cryptocurrencies, due to their decentralized nature and total tracking difficulty, can be used to illegal financial activities, such as influence laundering operations — a term that refers to manipulating elections through unidentifiable donations.
Why should Brazil pay attention to this debate?
The debate in Canada comes at a critical moment for Brazil, where the 2026 presidential election is already starting to mobilize parties, candidates and donors. Although the country does not yet have a specific legislation on crypto donations, the absence of clear rules leaves a dangerous gap. In 2022, the Supreme Electoral Court (TSE) regulated the use of cryptocurrencies in campaigns, but without explicitly prohibiting, which opened room for questions about transparency.
Data from the Brazilian Federal Revenue shows that, between 2020 and 2024, more than R$50 million in political donations were made through digital currencies, although the actual value may be higher as many transactions are not properly declared. The absence of a robust tracking system — such as the *know your customer* (KYC) mandatory in exchanges — makes it difficult to identify the source of the resources.
In addition, the use of cryptocurrencies in elections is not exclusive to Canada. In the United States, during the midterm elections in 2022, candidates such as senators Cynthia Lummis and Rand Paul received donations in Bitcoin. In Latin America, countries such as Argentina and Mexico have already faced cases of suspected money laundering via digital currencies in political campaigns. In Brazil, the most iconic case involved donations to candidates in 2018, when an *orange* scheme used Bitcoin to hide the origin of illegal resources.
Impact on the cryptocurrency market and the Brazilian ecosystem
If approved, the measure could serve as a model for other countries, including nations that, like Brazil, still discuss how to regulate the use of digital currencies in sensitive contexts such as elections. For the cryptocurrency market, the news reinforces the pressure for clearer regulations, especially on topics such as *compliance* and transparency.
In Brazil, exchanges such as Bitcoin Market, Foxbit and Bitso have already implemented stricter KYC systems, in line with the requirements of the Federal Revenue. However, the lack of a specific federal legislation leaves gaps. The Canadian proposal may accelerate discussions in the National Congress, where bills such as PL 2303/2022, which deals with cryptocurrency regulation, have been handled for years.
For cryptocurrency investors and enthusiasts in Brazil, the news is an important reminder: the industry is increasingly subject to regulations that aim to curb abuse, but that can also restrict the use of digital currencies in certain contexts.
Another relevant point is the impact on the price of assets such as Bitcoin and Ethereum. Although the ban on donations does not directly affect the value of currencies, the expectation of stricter regulations can generate volatility, especially in countries where the political use of crypto is significant. In Canada, for example, Bitcoin fell about 2% in the first hours after the announcement of the proposal, according to data from CoinGecko.
What’s Coming: Elections and Cryptocurrencies on the Global Radar
In the coming months, it is likely that other countries will follow Canada’s example and present similar proposals, especially after cases of electoral fraud involving digital currencies in nations like Ukraine and Russia. For Brazil, the lesson is clear: the country urgently needs legislation that balances innovation and security, ensuring transparency without stifling the sector.
Meanwhile, Brazilian investors should closely follow the discussions at TSE and Congress. Regulation is not just a matter of bureaucracy — it is a way to ensure that Brazil does not become a haven for illegal practices with cryptocurrencies. For those operating in the market, whether as a trader, miner or developer, adaptation to the new rules will be inevitable.
In an increasingly complex global scenario, where cryptocurrencies are used not only as financial assets but also as political tools, transparency will be the key word. Canada is taking the first step. It will be up to Brazil to decide whether to follow the same path or fall behind in the race for responsible regulation.