UK MPs Intensify Push for Ban on Crypto Donations to Political Parties

Cryptocurrency is playing an increasingly prominent role in political funding, which has raised concerns about transparency and regulation, prompting seven parliamentary committee chairs to call on the government to consider a full ban on crypto donations to political parties. Their call comes amid growing unease about how digital assets could be used in elections, particularly by foreign actors, and marks a more serious stage in the debate over crypto’s involvement in British elections.

MPs Call for Crypto Donation Ban

The campaign for a ban is led by committee chairs Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah, and Matt Western. They argue that cryptocurrency contributions can undermine the transparency and accountability that political funding demands. Byrne explained that crypto donations can hide the source of funds, allow multiple small contributions to bypass reporting rules, and increase the risk of foreign interference.

He also noted that the Electoral Commission’s current safeguards are not equipped to monitor or control crypto donations effectively. Highlighting steps taken by other democracies, Byrne stressed the need for the UK to act proactively to protect its elections, rather than waiting for a scandal to trigger reform. For the committee chairs, the issue is less about resisting technology and more about maintaining democratic integrity.

Challenges in Implementing a Ban

Government ministers, according to The Guardian, recognize that cryptocurrency contributions are difficult to verify, creating potential risks for electoral integrity. At the same time, the technical and legal hurdles involved in enforcing a full ban mean that such restrictions may not be in place for the upcoming elections legislation.

Under existing rules, UK law still allows political parties and individuals to accept cryptocurrency donations, provided they meet standard eligibility checks, according to The Observer. So far, very few parties have taken up this option. Nigel Farage’s Reform UK is the most prominent example, confirming it has received at least one crypto donation, though the exact amount has not been disclosed.

Political Donations and Digital Asset Rules Under Scrutiny

The debate over cryptocurrency donations in the UK has intensified, driven by a high-profile contribution and the government’s ongoing efforts to regulate digital assets :

• Reform UK took in a £9 million ($12 million) donation from Christopher Harborne, who holds roughly 12% of Tether, drawing attention to the influence of crypto wealth in political funding.
• Although the donation was made in traditional currency, Labour and Liberal Democrat lawmakers expressed concern that Harborne’s crypto holdings could give him undue influence over political decisions.
• Meanwhile, the government has strengthened oversight of digital assets, with Parliament classifying cryptocurrencies as property in December and the Financial Conduct Authority planning a framework for crypto services expected to come into effect in 2026.
• The government has also outlined plans to regulate cryptocurrency in a manner similar to conventional financial products by 2027, signaling its intention to align crypto with broader financial rules.

Campaign Groups Call for Stricter Crypto Rules

Alongside these plans, campaign groups have advocated for stronger rules on crypto donations. Susan Hawley, executive director of Spotlight on Corruption, described a ban as a positive step, while emphasizing the need for criminal measures to curb foreign influence and ensure law enforcement can investigate breaches effectively.

Crypto donations present real risks to our democracy… We know that bad actors like Russia use crypto to undermine and interfere in democracies globally, while the difficulties involved in tracing the true source of transactions means that British voters may not know everyone who’s funding the parties they vote for.

Susan Hawley

If introduced, the UK’s planned restrictions on crypto donations would contrast sharply with the United States, where political action committees used over $190 million in cryptocurrency to fund campaigns during the 2024 elections. Among the top individual contributors were Cameron and Tyler Winklevoss, who together donated $10.1 million.