The United Kingdom is set to prohibit cryptocurrency donations to political parties, as Prime Minister Keir Starmer unveiled sweeping measures aimed at protecting British democracy from foreign interference and illicit finance.
Speaking during Prime Minister’s Questions in the House of Commons, Starmer warned that unregulated digital funding poses a serious risk to the integrity of the political system. He stated: “we will act decisively to protect our democracy”, adding that the reforms “will include a moratorium on all political donations made through cryptocurrencies.”
The proposed ban forms part of a broader government effort to tighten rules around political financing in the UK. Officials argue that cryptocurrencies, due to their often opaque nature, could be exploited to funnel foreign money into British politics.
A recent report led by Philip Rycroft highlighted the risks, warning that such donations could be “used as the vehicle to channel foreign money into the political system in the UK”. He further noted that “the number of donations made in cryptoassets is currently unknown”, recommending a temporary ban until regulation catches up with technological developments.
The move could significantly affect Reform UK, one of the few parties in Britain that currently accepts cryptocurrency donations. Led by Nigel Farage, the party has gained momentum in recent opinion polls despite holding just eight seats in Parliament.
According to official data from the Electoral Commission, Reform UK received £12 million in the past year from Christopher Harborne, who is based in Thailand.
Deputy leader Richard Tice criticised the government’s plans, claiming they are designed “to stop the incredible progress of Reform”. He also defended digital currencies, stating: “cryptocurrencies are a perfectly legitimate way of investing, of earning within the law.”
In addition to banning crypto donations, the government will introduce a £100,000 annual cap on political contributions from British citizens living overseas. While UK election spending is already tightly regulated, there has historically been no limit on donation amounts, provided contributors are eligible UK voters or registered companies.
The review into foreign financial interference was commissioned in December following a series of high-profile incidents, including the conviction of former politician Nathan Gill for accepting bribes to make pro-Russian statements in the European Parliament.
The proposed changes will require parliamentary approval but are expected to be backdated to take effect immediately. The government maintains that these reforms are essential to safeguarding democratic processes.
Starmer’s administration has already introduced a number of measures aimed at strengthening electoral integrity, including stricter rules on corporate donations and lowering the voting age from 18 to 16.