- Seven Labour MPs who chair parliamentary committees have urged the government to ban cryptocurrency donations, citing risks to transparency and electoral integrity.
- Ministers acknowledge the risks but believe a ban will not be ready for inclusion in the forthcoming elections bill.
- Reform UK’s acceptance of a major fiat donation from a crypto investor and other crypto donations in general have intensified scrutiny.
Pressure is mounting on the UK government to ban cryptocurrency donations to political parties after seven Labour MPs who chair parliamentary committees urged ministers to act through forthcoming elections legislation.
In a joint letter, the committee chairs warned that crypto donations threaten the transparency, traceability and enforceability of political finance rules. The signatories include Liam Byrne, Chair of the Business and Trade Select Committee as well as Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah and Matt Western.
Byrne said crypto can obscure donor identity, facilitate multiple small donations below disclosure thresholds and expose UK politics to foreign interference, citing Electoral Commission warnings that current technology makes these risks difficult to manage. Thornberry said committee evidence had shown how crypto has been used to undermine democracies internationally.
Anonymous money has no place in British democracy…. When technology makes foreign interference cheaper, faster and harder to trace, the answer isn’t an open door. We have to bolt the door shut.
Liam Byrne, Chair of the Business and Trade Select CommitteeRelated: Regulatory Rift Delays South Korea’s Landmark Crypto Law Over Stablecoin Control
Implementation Challenges Stall Action
The government has been weighing a ban since at least July 2025, when Cabinet Office minister Pat McFadden said the issue should be considered by the Electoral Commission. Ministers accept that crypto donations pose risks to electoral integrity, but officials believe the complexity of implementation means a ban will not be included in the elections bill expected shortly.
Reform UK has emerged as a focal point in the debate after becoming the first UK party to accept cryptocurrency donations. The party has confirmed receiving at least one crypto contribution and has established a dedicated portal with enhanced checks.
Concerns escalated in December after disclosures showed Reform received a £9 million (AU$18.03 million) donation from crypto investor Christopher Harborne, although the funds were donated in fiat currency rather than crypto.
Related: Bitcoin Faces Consolidation After Disappointing 2025, Analysts Cautious on Near Term
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