Parliament Committees Urge UK to Block Crypto Political Funding
- UK committee chairs warn crypto donations weaken oversight and donor verification.
- Ministers review risks but exclude crypto bans from the upcoming elections bill.
- Reform UK’s cryptocurrency funding plans intensify scrutiny of political finance rules.
Senior UK lawmakers have urged the government to impose a full ban on cryptocurrency donations to political parties, citing concerns over transparency, enforcement, and election security. Seven parliamentary select committee chairs wrote to ministers on Sunday calling for an outright prohibition on crypto political donations, according to local reports.
The intervention intensifies a debate that has unfolded over several months as digital assets gain visibility in British politics. The letter warns that current political finance rules struggle to address risks posed by cryptocurrency funding. The appeal places added pressure on the Labour government as it prepares to publish an Elections Bill that is not expected to include crypto-related donation restrictions.
Lawmakers Warn of Transparency and Security Risks
The letter was led by Liam Byrne, chair of the business and trade select committee, and signed by six other committee chairs. The group includes lawmakers overseeing the Treasury, Home Affairs, and Foreign Affairs committees.
In comments reported by The Guardian, Byrne said cryptocurrency donations can obscure the true source of funds. He said digital assets allow donors to split large sums into many small payments that fall below disclosure thresholds.
Byrne also said the Electoral Commission has warned that existing technology makes these risks difficult to manage. The committee chairs argue that crypto donations could expose UK politics to foreign interference through funding channels that regulators struggle to trace.
Government Reviews Ban but Delays Inclusion in Bill
The Labour government has considered restricting cryptocurrency donations since at least July 2025. Cabinet Office minister Pat McFadden publicly raised the issue last summer. Government sources said that ministers believe crypto donations pose a risk to electoral integrity. They said verifying the source of crypto funds remains challenging under current systems.
Despite those concerns, officials said the complexity of implementing restrictions means a ban will not appear in the Elections Bill expected to be published soon. Ministers continue to assess whether existing political finance laws can address emerging risks.
Reform UK Triggers Political Finance Scrutiny
The debate intensified after Reform UK announced plans to accept Bitcoin and other cryptocurrency donations. Party leader Nigel Farage announced it in May 2025, framing it as part of a broader crypto-focused platform. Reform UK later received the UK’s first registered cryptocurrency donation. The party has not released an official valuation of that contribution.
Scrutiny increased in December when Electoral Commission filings indicated Reform UK received a £9 million donation from Christopher Harborne. While the donation was made in fiat currency, Harborne’s wealth is closely linked to cryptocurrency investments. Labor and Liberal Democrat lawmakers called for regulatory reviews following the disclosure.
Crypto Regulation Advances Alongside Donation Debate
The restriction of political donations has been a hot topic in UK politics, coinciding with the country’s efforts to comprehensively regulate the crypto market. In the previous month, Parliament voted in favor of the law that treats digital currencies as property.
Moreover, the government has signaled its intention to bring crypto under the same regulatory umbrella as traditional financial instruments by 2027. The Financial Conduct Authority is engaged in the comprehensive regulation of stablecoins, trading platforms, lending, and staking.
Related: Ripple Secures UK FCA Registration for Crypto Payment Services
According to the current Electoral Commission guidelines, all monetary contributions above £500 must be provided by donors whose connection to the UK is verified. Legislators have claimed that the use of cryptocurrencies in donations has made it very difficult to carry out the verification process, especially with the use of privacy tools that hide the origin of the transactions.
The ministers have yet to finalize the action they will take next; the dispute concerning the legality of crypto donations is still very much alive, and financial regulations are being re-evaluated due to the ever-increasing acceptance of digital assets.
