UK Committee Calls for Immediate Moratorium on Crypto Donations
A cross-party parliamentary committee in the United Kingdom has called for an immediate pause on cryptocurrency donations to political parties, citing growing concerns about transparency and national security.
In a newly published report, the Joint Committee on the National Security Strategy urged the government to introduce a temporary ban until stronger safeguards are established. The recommendation includes amending the Representation of the People Bill to enforce this moratorium until the Electoral Commission provides clear statutory guidance ahead of the next general election, expected by August 2029.
The committee emphasized that current regulations are not robust enough to handle the risks associated with digital currencies in political financing. It also proposed the creation of a Political Finance Enforcement Unit to monitor donations more effectively.
In addition, lawmakers suggested lowering the donation disclosure threshold from £11,180 to £500. This change aims to improve transparency and prevent smaller, potentially suspicious contributions from slipping under the radar. The report also recommends stricter penalties, including increasing the maximum prison sentence to three years for offenses linked to illegal or foreign funding.
Rising Concerns Over Foreign Influence and Crypto Transparency
The push for stricter rules comes amid increasing fears that cryptocurrency could be used to channel foreign funds into UK politics. According to the committee, crypto donations pose an “unnecessary and unacceptably high risk” to the integrity of the political system without proper oversight.
Lawmakers highlighted how digital currencies can obscure the origin of funds and enable multiple small donations that avoid disclosure requirements. These factors raise serious concerns about foreign interference, especially in relation to the UK’s stance on key global issues such as relations with the United States, the European Union, and Ukraine.
The issue has gained attention following moves by Reform UK, led by Nigel Farage, which became the first British political party to accept cryptocurrency donations in 2025. The party reported receiving millions in crypto contributions, including significant donations from investor Christopher Harborne.
Political pressure is also mounting within the government. Several senior MPs from the Labour Party have already called on Prime Minister Keir Starmer to ban crypto donations entirely, warning that they could undermine public trust.
Other countries have already taken action. For example, Ireland has banned political cryptocurrency donations due to similar concerns about transparency and foreign influence.
