Senior lawmakers in the United Kingdom (UK) are calling on the government to bar cryptocurrency donations to political parties amid growing concerns that digital assets could be used to obscure funding sources and enable foreign interference in UK politics. Seven senior Labour MPs, including committee chairs such as Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah and Matt Western, wrote to Prime Minister Keir Starmer urging him to include a prohibition on crypto political contributions in the upcoming Elections Bill, officials and news outlets report.
In their open letter, the MPs argue that political financing “must be transparent, traceable and enforceable,” and that cryptocurrencies, with their ability to move value across borders and obscure the ultimate origin of funds, fall short of those standards. They warned that allowing political donations in digital assets risks undermining democratic integrity by making it easier for anonymous or foreign actors to influence domestic elections without clear disclosure mechanisms.
One of the signatories, Business and Trade Committee Chair Liam Byrne, said cryptocurrency can “obscure the true source of funds, enable thousands of micro donations below disclosure thresholds, and expose UK politics to foreign interference,” calling for explicit legal language in the Elections Bill to ban such contributions before they become an entrenched feature of Britain’s political finance landscape.
The MPs’ campaign comes as Nigel Farage’s Reform UK party has positioned itself as one of the first major political groups in Britain to accept cryptocurrency donations, a development that has drawn scrutiny from lawmakers and campaign groups alike. Critics argue that digital currencies could allow donors to circumvent existing political finance rules that are designed to ensure transparency and prevent foreign money from entering national campaigns.
Advocacy groups supporting stronger rules have backed the MPs’ call, saying that the UK must act proactively rather than wait for problems to emerge. Some have called for not just a ban but also criminal penalties for illicit foreign crypto financing and increased resources for regulators like the Electoral Commission to enforce political finance laws in an era of rapidly evolving financial technology.
While government officials have acknowledged the potential risks posed by cryptocurrency donations, they have expressed uncertainty about whether a full ban can be implemented in time for the Elections Bill’s passage, due to technical and legislative challenges. The debate reflects broader global concerns about how digital assets intersect with democratic processes and national security.
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