Seven senior Labour MPs have called on the UK government to prohibit political donations made in cryptocurrency, citing risks to democratic integrity. They argue that such transactions are difficult to trace and could enable foreign interference. The push comes amid government plans to address the issue, though a full ban may not arrive in time for upcoming legislation.
In a letter to Downing Street, seven Labour MPs who chair parliamentary committees—Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah, and Matt Western—have demanded a complete ban on cryptocurrency donations in the forthcoming elections bill. Their concerns center on the potential for crypto to mask funding sources and allow undue influence from foreign states.
Liam Byrne emphasized the need for transparent political finance, stating, “Crypto can obscure the true source of funds, enable thousands of micro donations below disclosure thresholds, and expose UK politics to foreign interference.” He noted that the Electoral Commission has highlighted how current technology struggles to mitigate these risks, adding, “Other democracies have already acted. The UK should not wait until a scandal forces our hand. This is not about opposing innovation. It is about protecting democracy with rules that work in the real world.”
Government officials share these worries, viewing crypto donations as a threat to electoral integrity because verifying origins proves challenging. However, sources indicate that while ministers are exploring a ban, it is unlikely to feature in the elections bill, expected soon and focused on measures like lowering the voting age to 16 and closing finance loopholes.
The proposal would impact parties like Nigel Farage's Reform UK, the first to accept crypto contributions this year. The party received its initial registrable donations in cryptocurrency last autumn and operates a dedicated portal with enhanced verification. Pat McFadden, a former Cabinet Office minister, first floated the idea in July, stressing the importance of confirming donors' legitimacy.
Campaigners, including Susan Hawley of Spotlight on Corruption, welcomed the prospective ban but urged stronger measures. She said, “Crypto donations present real risks to our democracy,” pointing to actors like Russia using digital currencies to interfere globally. Hawley called for new criminal offenses and better-resourced police investigations to block foreign money in UK politics.
The Electoral Commission offers guidance on crypto donations, but any prohibition would require legislative action from the government.
