A committee of seven senior MPs from the Labour Party in the UK has formally requested the government to introduce a comprehensive ban on political donations made through cryptocurrencies. In a letter addressed to Prime Minister Kier Starmer, the committee advocates for explicit provisions within the upcoming elections bill to prohibit such contributions.
The MPs, including notable figures like Liam Byrne and Emily Thornberry, raised concerns during committee sessions regarding potential foreign interference in elections facilitated by cryptocurrency donations. They highlighted the unpredictable nature of these funds, which often elude current UK regulatory frameworks.
Recent instances have intensified scrutiny on crypto donations, especially after Reform UK, a political party, secured a significant donation of £9 million ($12 million) from investor Christopher Harborne ahead of local elections in May. This has prompted authorities to reevaluate the implications of anonymous donations in the political sphere.
Byrne, who chairs the business and trade select committee, emphasized the importance of transparency in political finance, stating, “Political finance must be transparent, traceable, and enforceable.” He cautioned against the risks posed by cryptocurrencies, which can obscure the origins of funds and enable numerous small donations that fall below mandatory disclosure thresholds.
Echoing these sentiments, Thornberry noted that banning cryptocurrency donations would serve to safeguard democracy in the UK. She pointed to findings from the Foreign Affairs Committee regarding global threats to democracy, labeling cryptocurrencies as a preferred means for illicit funding, particularly in relation to foreign adversaries.
The UK government”s stance on crypto political donations has been under review for some time, with further details expected to be revealed alongside the elections bill. Additionally, former civil servant Philip Rycroft is currently examining foreign financial influences in UK politics, with a particular focus on cryptocurrency, although his conclusions are not anticipated until March 2026.
The Labour MPs” call for a ban indicates a growing consensus in the UK Parliament regarding the need for stricter regulations surrounding cryptocurrency in political finance. As the conversation around crypto continues to evolve, it remains to be seen how this will impact future electoral processes and the role of digital currencies in political fundraising.
