UK committee chairs push for crypto political donations ban, adding pressure to Labour government

The chairs of seven UK parliamentary committees, including Liam Byrne of the business and trade select committee, sent a letter to the government demanding an outright ban on cryptocurrency donations to political parties. They argue that crypto donations compromise transparency, traceability, and enforcement, potentially exposing UK politics to foreign interference through hard-to-trace micro-donations.

This move increases pressure on the Labour government, which has been considering a ban since July 2025, though implementation is complicated, potentially delaying inclusion in the upcoming Elections Bill. The debate intensified after Reform UK leader Nigel Farage announced his party would accept crypto donations, and the party received a large fiat donation from Christopher Harborne, a major crypto investor.

The push for restrictions occurs while the UK is advancing its broader crypto regulatory framework, including legislation recognizing digital assets as property and plans to regulate crypto like traditional financial products by 2027. This proposed ban contrasts with the US federal landscape, where crypto spending in elections is significant but no federal prohibition exists.

(Source：The Block)