Quick Breakdown
- UK lawmakers want crypto political donations banned over concerns they could hide foreign interference.
- The proposal may miss the upcoming elections bill due to regulatory complexity, officials say.
- Reform UK could be most affected, having positioned itself as the UK’s first pro-crypto political party.
Seven senior UK lawmakers have called on Prime Minister Keir Starmer to outlaw cryptocurrency donations to political parties, warning that digital assets could be used to hide foreign influence and undermine trust in the democratic process.
1️⃣ Seven senior Labour MPs, led by Business Committee Chair Liam Byrne, are demanding an immediate ban on cryptocurrency political donations.
They warn that digital assets are becoming a “black box” for foreign interference in British democracy. 🧵👇#UKPolitics #ElectionsBill pic.twitter.com/TbKi59L3iD
— Conor Kenny (@conorfkenny) January 12, 2026
In a letter sent to the government on Sunday, Labour MPs who chair several parliamentary committees urged ministers to include a ban on crypto donations in an upcoming elections bill expected later this month. The proposal was first reported by The Observer and The Guardian.
The lawmakers argue that cryptocurrencies make political funding harder to track and enforce, especially as the UK prepares for local elections in May.
Liam Byrne, chair of the business and trade committee and one of the signatories, said political donations must be “transparent, traceable and enforceable” standards that he believes crypto fails to meet.
According to Byrne, digital assets can mask the true source of funds, enable large volumes of small donations below disclosure limits, and expose UK politics to foreign interference. He added that the Electoral Commission has already warned that existing technology makes these risks extremely difficult to control.
While the government is planning an elections bill that would also lower the voting age to 16, The Guardian reported that officials are sceptical about including a crypto ban, citing the complexity of regulating digital assets within the current legislative timeline.
Reform UK’s crypto ambitions face a potential setback
A ban would be a blow to Reform UK, which announced in May that it would become the first British political party to accept cryptocurrency donations. Party leader Nigel Farage has positioned Reform as openly pro-crypto, even backing the idea of a national Bitcoin reserve.
Reform UK says it does not accept anonymous crypto donations. However, the party drew attention in December after receiving a record £9 million ($12 million) cash donation from early crypto investor Christopher Harborne, the largest political donation ever made by a living individual in the UK. The donation was disclosed in compliance with electoral law.
The idea of banning crypto donations isn’t new. Senior Labour MP Pat McFadden raised the issue last July, stressing the importance of knowing who is funding political parties and ensuring donations come from legitimate, registered sources.
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