UK Backbenchers Committee Urges Total Ban on Crypto Donations to Political Parties

A committee of Labour MPs in the UK has called for a complete ban on cryptocurrency donations to political parties. Citing concerns about foreign influence and the potential for obscured funding sources, the committee is urging the government to take immediate action as part of upcoming election legislation.

Key Takeaways

A Labour MPs committee wants a ban on cryptocurrency donations to political parties in the UK.
Concerns include foreign interference and the lack of transparency in fund sources.
The call for a ban gains momentum following a significant crypto donation made to a political party.
Experts express that anonymous donations could harm the integrity of British democracy.

UK crypto donation

Political Donation Committee Calls for Ban on Crypto Contributions

The committee of seven senior Labour MPs is advocating for the UK government to implement a total ban on cryptocurrency donations to political parties. They have reached out to Prime Minister Kier Starmer, suggesting that the forthcoming elections bill explicitly prohibits such donations to politicians and parties. Their request comes in light of various concerns raised during the committee's evidence sessions.

According to reports from The Observer, the committee has identified several key issues, including the potential for foreign manipulation of elections via cryptocurrency, the use of technologies operating outside of UK regulations, and the role of artificial intelligence in obscuring funding sources.

Notable members of the committee include former minister Liam Byrne, along with MPs like Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah, and Matt Western.

Growing Momentum for Restrictions on Crypto Donations

The UK government’s consideration to fully prohibit cryptocurrency in political contributions is not a new development. Last month, officials announced that further details on this plan would emerge alongside the publication of the Elections Bill.

Recently, the government's focus on enforcing this ban intensified after the political party Reform UK received a record-breaking cryptocurrency donation amounting to £9 million (approximately $12 million). This substantial contribution was made by crypto investor Christopher Harborne ahead of the local elections slated for May, as reported by the Electoral Commission.

Additionally, former senior civil servant Philip Rycroft is conducting a review of foreign financial influence in UK politics, which includes an examination of cryptocurrency donations. However, this review is expected to be completed only by March 2026, according to local news reports.

“Anonymous Money Has No Place in British Democracy”: Liam Byrne

Liam Byrne, who serves as the chair of the business and trade selection committee, emphasized the Labour MPs’ concern over the need for transparency, traceability, and enforceability in political finance, as reported by the Guardian on Sunday.

“Cryptocurrency can obscure the true source of funding, allowing for numerous micro-donations that fall below disclosure thresholds and expose UK politics to foreign interference,” he remarked.

Byrne warned that the UK should not delay action until a scandal unfolds, reiterating that this appeal is not an opposition to innovation. “If the Elections Bill does not include a ban on cryptocurrency donations, I will propose amendments to ensure it does, and I have strong support from many MPs on this issue. Anonymous money has no place in British democracy,” he asserted.

Fellow Labour MP Emily Thornberry, who chairs the Foreign Affairs Committee, stated that banning cryptocurrency donations is essential for protecting the integrity of the UK’s democratic processes. “Our committee has been investigating global threats to democracy, and our findings indicate that cryptocurrency has become the preferred method for illicit funding in Russia,” Thornberry added.