Senior Labour MPs have called on the government to introduce a full ban on cryptocurrency political donations ahead of the upcoming elections. The committee chairs, including Liam Byrne and Emily Thornberry, are concerned that the current lack of regulation poses significant risks to the integrity of the electoral system.
According to the MPs, cryptocurrency donations can obscure the true source of funds, enable micro donations below disclosure thresholds, and expose UK politics to foreign interference. They argue that this is not about opposing innovation but rather about protecting democracy with rules that work in the real world.
The government has acknowledged these concerns and is exploring ways to ban political donations made with cryptocurrency. However, officials believe that a ban by the time of the elections bill may be unworkable due to the complex nature of cryptocurrency.
This move would likely have a significant impact on Nigel Farage's Reform UK party, which has become one of the first parties to accept contributions in digital currency. The party has received its first registrable donations in cryptocurrency this autumn and has set up its own crypto portal to receive contributions.
Campaign groups have welcomed the prospective ban but are calling for more robust measures to be put in place. Susan Hawley, executive director of Spotlight on Corruption, said that the government must come forward with a criminal offence that makes it harder for foreign money to get into UK politics and ensure that the police are properly resourced to investigate.
The Electoral Commission has warned that current technology makes these risks exceptionally hard to manage, but other democracies have already taken steps to regulate cryptocurrency donations. The UK should not wait until a scandal forces its hand, according to Byrne.
According to the MPs, cryptocurrency donations can obscure the true source of funds, enable micro donations below disclosure thresholds, and expose UK politics to foreign interference. They argue that this is not about opposing innovation but rather about protecting democracy with rules that work in the real world.
The government has acknowledged these concerns and is exploring ways to ban political donations made with cryptocurrency. However, officials believe that a ban by the time of the elections bill may be unworkable due to the complex nature of cryptocurrency.
This move would likely have a significant impact on Nigel Farage's Reform UK party, which has become one of the first parties to accept contributions in digital currency. The party has received its first registrable donations in cryptocurrency this autumn and has set up its own crypto portal to receive contributions.
Campaign groups have welcomed the prospective ban but are calling for more robust measures to be put in place. Susan Hawley, executive director of Spotlight on Corruption, said that the government must come forward with a criminal offence that makes it harder for foreign money to get into UK politics and ensure that the police are properly resourced to investigate.
The Electoral Commission has warned that current technology makes these risks exceptionally hard to manage, but other democracies have already taken steps to regulate cryptocurrency donations. The UK should not wait until a scandal forces its hand, according to Byrne.
think this is gonna be a big deal for reform uk if they get banned from crypto dons... like they're already playing with fire by accepting them in the first place 
and now the gov's having second thoughts 
what's the point of having regulations if you just gonna tweak 'em at the last minute 
? should've done this yrs ago when crypto was still a tiny thing 
. It's crazy how some parties are just winging it with crypto donations and it's like, hello! We're trying to protect democracy here 
. I mean, Nigel Farage's party getting in on the action now is a bit suspicious tbh 
. The government should definitely step up their game and get this ban passed ASAP 
. It's not about stifling innovation, it's about keeping our politics clean and transparent 
.
It's just not right.
That can't be right.
this is defo needed ASAP, all those dodgy foreign donors getting in through crypto can't be good for our democracy 
i hope the gov can sort this out before election time or we'll be in for a world of trouble 
. it's sickening that we're still living in a world where foreign money can be funneled into our elections and influence the outcome. i'm all for innovation, but not when it comes at the expense of our democratic values.
. a ban on crypto donations is just the starting point - we need to make sure that there are serious consequences for anyone trying to use foreign money to influence our politics.
anyway, hope they get a handle on this before elections! 
. And those campaign groups are right on point about needing more robust measures in place.
. if they can find ways to make it work, that'd be awesome 
. i'm not sure why reform uk is getting all the attention on this though - aren't they basically profiting from this whole crypto thing? 
. But at the same time, you've got to consider the bigger picture. If we're gonna regulate this stuff, it should be a comprehensive overhaul, not just a quick fix before elections. We need laws that actually work, you know? 
! Can you imagine if some dodgy foreign bloke funneled cash into our elections through crypto? It's just not on 
.
. We need some transparency and accountability, pronto! And I'm all for the government looking into this 
.
. and btw, Reform UK accepting crypto donations is like, super sketchy . i dont blame them 4 speakin out tho, even if its prob gonna hurt their party rn 
.
. lets not just wait for a scandal 2 happen... that would b a total disaster 
. It would be interesting to see how the government navigates this complex issue, particularly with regards to the timing of a potential ban in relation to the upcoming elections 
. Ultimately, I think it's essential that we prioritize measures to protect our democracy and ensure that foreign money doesn't influence our electoral process 
at least now the gov's acknowledging the risks, but it's taking forever 
come on, let's get this ban in place already! 
Can't just let foreign money swing elections around like a pendulum 
. The government should get its act together and make some rules ASAP 
... I mean, Nigel Farage's party is already making a big deal about this, but if we don't do something, they'll just exploit the loophole 
.
I mean, can you even imagine if some shady foreigner was able to swing an election in the UK?