UK lawmakers push crypto donation ban over foreign interference fears

A cross-party parliamentary committee in the UK has called for an immediate halt to cryptocurrency donations to political parties.

It warned that existing safeguards are not strong enough to prevent risks to national security and democratic integrity.

In a report published on Wednesday, the Joint Committee on the National Security Strategy urged the government to amend the Representation of the People Bill and introduce a temporary ban until clearer regulatory guidance is in place.

The recommendation comes as concerns grow over foreign influence, transparency gaps, and the rapid rise of crypto-linked political funding.

Committee flags security risks

The committee said crypto donations present an avoidable risk to the UK’s political finance system.

It warned that digital assets can make it harder to trace the origin of funds, raising concerns about external actors attempting to shape political outcomes.

The report linked these risks to broader geopolitical tensions, noting that foreign states may try to influence UK positions on key issues such as relations with the US, the European Union, and Ukraine.

It said the absence of strict safeguards makes crypto an unsuitable channel for political funding at present.

To address these concerns, lawmakers proposed an immediate moratorium until the Electoral Commission issues statutory guidance before the next general election, which is due by August 2029.

Tighter rules on political funding

Beyond the proposed ban, the committee outlined a wider set of reforms aimed at strengthening oversight.

It recommended the creation of a Political Finance Enforcement Unit to monitor donations and enforce compliance.

Lawmakers also called for lowering the disclosure threshold for political donations from 11,180 pounds to 500 pounds, a move designed to improve transparency around smaller contributions.

In addition, the report suggested increasing the maximum prison sentence for offences involving foreign funding to three years.

These measures are intended to close gaps in the current system and ensure that all sources of political funding are properly scrutinised.

Rising scrutiny of crypto donations

The debate around crypto in politics has intensified over the past year.

Reform UK became the first political party in the country to accept cryptocurrency donations in 2025, marking a shift in how parties approach fundraising.

The party later disclosed a $4 million donation from crypto investor Christopher Harborne in the fourth quarter of 2025, following an earlier contribution of $12 million in the previous quarter.

The committee said such donations highlight the urgency of introducing clearer rules, particularly as the scale and frequency of crypto contributions increase.

Pressure builds on government

Political momentum for stricter regulation has been building across parties.

Earlier this year, seven senior Labour MPs wrote to Prime Minister Keir Starmer urging a ban on crypto donations, citing concerns about transparency and foreign interference.

The issue has also been under review since December 2025, when lawmakers began examining whether existing rules were sufficient to manage emerging risks linked to digital assets.