British Parliament Committee Calls for Immediate Ban on Political Crypto Contributions
Members of a UK parliamentary committee have called for a temporary ban on cryptocurrency contributions to political parties pending implementation of comprehensive protective measures.
A parliamentary committee representing multiple political parties in the United Kingdom has called upon the government to establish an immediate moratorium on political parties receiving cryptocurrency donations until more robust protective measures can be implemented.
According to a report released on Wednesday, the Joint Committee on the National Security Strategy recommended that the government modify the Representation of the People Bill to establish an "immediate moratorium on crypto donations" pending the Electoral Commission's development of statutory guidance before the upcoming general election, scheduled to take place no later than August 2029.
The committee further recommended establishing a Political Finance Enforcement Unit charged with monitoring these activities and lowering the minimum reporting threshold for gifts associated with political donations from 11,180 British pounds ($14,900) down to 500 pounds ($668), while also suggesting an increase in maximum custodial sentences to three years for violations involving foreign financing.
The committee referenced increasing threats from foreign state actors and attempts to shape the UK's stance on crucial matters, including its relationships with the US, the European Union and Ukraine.
The suggestion arrives during a period of heightened examination of cryptocurrency-related funds in British political circles. Nigel Farage's Reform UK made history as the first party to begin accepting crypto donations in 2025. Reform UK recently revealed a $4 million donation from crypto investor Christopher Harborne during the fourth quarter of 2025, following a record-breaking $12 million gift in the preceding quarter.
Cryptocurrency contributions present "unnecessary" danger to UK political system
Cryptocurrency donations represent an "unnecessary and unacceptably high risk" to the political finance system's integrity and to public confidence, absent strong regulatory guardrails, according to the report.
"We see no democratic imperative to permit the use of crypto in political finance until adequate safeguards are in place."
The committee additionally referenced jurisdictions, including Ireland, that have prohibited party members from receiving political cryptocurrency donations based on concerns about foreign interference.
The report was published shortly after Matt Western, chair of the committee, called on the government to implement a temporary prohibition on crypto donations to political parties, pointing to foreign interference risks, Cointelegraph reported on Feb. 26.
Cryptocurrency contributions spark worry in the UK
Political cryptocurrency donations remain lawful in the UK, provided they comply with permissible rules outlined in the Electoral Commission guidance. UK lawmakers reportedly began weighing a ban on political cryptocurrency donations in December 2025.
In January, seven senior UK Labour Party MPs called upon Prime Minister Keir Starmer to prohibit crypto for political donations.
"Crypto can obscure the true source of funds, enable thousands of micro donations below disclosure thresholds, and expose UK politics to foreign interference," wrote business and trade committee chair Liam Byrne, one of the seven signatories of the letter.