MPs Urge Temporary Ban on Crypto Donations to Political Parties
UK lawmakers have called for a temporary suspension on political parties accepting cryptocurrency donations, citing concerns that digital assets could be used to channel foreign money into British politics. While overseas donations are already illegal, campaigners and MPs fear crypto could obscure the true origin of funds.
Concerns Over Hidden Foreign Funding
The UK government is already moving to strengthen transparency rules on political financing. However, anti-corruption groups warn that cryptocurrency donations, which remain legal, may allow donors to conceal their identities and bypass existing safeguards.
Parliament’s Joint Committee on the National Security Strategy has formally written to ministers demanding a pause on crypto donations until clearer regulations are in place.
Reform UK’s Use of Cryptocurrency Donations
Reform UK is currently the only Westminster party known to have received crypto donations. Party leader Nigel Farage announced at a Las Vegas crypto conference in May last year that the party would accept Bitcoin contributions. By October, he confirmed the party had already received a small number of such donations.
According to Reform UK’s website, it does not accept anonymous contributions. Donations above £500 must pass standard eligibility checks to confirm they come from UK-registered individuals or companies listed on the electoral register.
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Committee Calls for Moratorium and Safeguards
The national security strategy committee is urging a temporary moratorium on crypto donations until the Electoral Commission develops formal guidance. Committee chair Matt Western said parties should only accept cryptocurrency funds when there is strong certainty about the original source.
He also proposed that parties be required to convert crypto donations into pounds within 48 hours and that any contribution with an obscured donor should be banned.
Fears of Foreign Interference Before Next Election
The committee’s recommendations follow an inquiry into political finance and risks of overseas influence. MPs warned that foreign interference threats may increase in the run-up to the next general election.
Western argued that global tensions, including the war in Ukraine and strained international relations, have increased incentives for external actors to influence UK political positions. He cautioned that public belief in foreign interference could damage long-term trust in democratic institutions.
Wider Proposals to Strengthen Political Finance Rules
Beyond crypto restrictions, the committee recommended tougher penalties for breaches of political finance law, stricter checks on donors’ wealth sources, and the creation of a specialist police unit focused on foreign interference.
Government Bill Targets Illicit Donations
The government has already introduced measures in the Representation of the People Bill aimed at preventing unlawful foreign donations. The proposed law would require companies donating to political parties to demonstrate a genuine UK link, such as being headquartered in Britain, controlled by UK citizens or voters, and generating sufficient domestic revenue.
The bill also proposes lowering the voting age to 16. However, it does not currently include a ban on cryptocurrency donations.
Campaigners Push for Crypto Ban
Advocacy groups, including Spotlight on Corruption. Are urging ministers to add a crypto donation ban as the bill progresses through Parliament.
A separate review into foreign interference in UK politics, led by former senior civil servant Philip Rycroft. Is examining cryptocurrency risks and is expected to report next month.
Government Response
A spokesperson for the Ministry of Housing. The Communities and Local Government said the Representation of the People Bill aims to reduce foreign interference risks by tightening political donation rules. The spokesperson added that the independent review would explore further safeguards against illicit overseas funding, including the use of cryptocurrencies.
