British Security Committee Leader Calls for Temporary Prohibition on Cryptocurrency Campaign Contributions
Matt Western, who chairs the UK security committee, is calling on authorities to implement a temporary prohibition on cryptocurrency campaign contributions through the Representation of the People Bill while stricter regulations are formulated.
The chair of the United Kingdom's Joint Committee on National Security Strategy, Matt Western, has called upon the government to implement a temporary suspension on cryptocurrency contributions to political organizations, expressing worries about potential foreign meddling.
Western sent a letter on Monday to Steve Reed, the Secretary of State for Housing, Communities and Local Government, in which he proposed incorporating a "temporary moratorium" on cryptocurrency contributions into the forthcoming Representation of the People Bill. According to the proposal, this moratorium would remain in effect until the Electoral Commission releases statutory guidance on the matter.
"We are concerned that foreign state intent to interfere in UK political finance may grow out to the next election," Western said.
"As the security environment worsens and the UK's military role in Europe grows, the value of influencing the UK's political positions, for example on Ukraine, or US/EU relations, is likely to increase," he added.
Back in January, multiple Members of Parliament who lead parliamentary committees — Western among them — pushed for a complete prohibition on cryptocurrency contributions to be incorporated into the Representation of the People Bill, cautioning that foreign governments could leverage these payments as a means to exert influence over British politics. Nevertheless, when the legislation was presented to the House of Commons on Feb. 12, a complete ban was not part of the proposed measures.
Ban funds from crypto mixers and anonymous sources
According to Western's recommendations, the Electoral Commission's guidance ought to mandate that political organizations exclusively utilize cryptocurrency services that have been registered with the Financial Conduct Authority, which serves as the United Kingdom's regulatory body for financial services.
Contributions that incorporate the upstream utilization of mixing services or originate from unidentified sources should be banned, Western stated, and political organizations receiving cryptocurrency ought to exchange it for traditional currency within a 48-hour timeframe following receipt.
The subsequent general election in the United Kingdom is required to take place no later than Aug. 15, 2029. In the interim, the Representation of the People Bill has been slated for a second reading in the House of Commons on March 2.
National police force needed to tackle foreign interference
The letter from Western also puts forward longer-term remedies, including the establishment of a national police force specifically tasked with supervising political finance and fighting foreign interference.
"Our evidence suggests that there is no clear national enforcement lead for political finance and foreign interference risk. Responsibilities are split across the Electoral Commission, the Metropolitan Police Service, Counter-Terror Policing, the National Crime Agency, MI5 and local police forces," he said.
Western further proposed implementing source-of-wealth verification procedures for contributors, conducting a review of sentencing guidelines for electoral finance violations, imposing stricter penalties for infractions, and granting enhanced authority to the Electoral Commission to mandate institutions to reveal the origins of donation funds.
Reform UK made history as the inaugural party to accept cryptocurrency contributions in May of last year, with party leader Nigel Farage making the announcement at the Bitcoin 2025 conference held in Las Vegas that the organization is now accepting Bitcoin (BTC) along with other cryptocurrency contributions from qualified donors.