UK lawmakers urge ‘immediate moratorium’ on crypto political donations

A U.K. parliamentary committee has urged the government to impose an “immediate moratorium on crypto donations” until stricter regulations are in place. The Joint Committee on the National Security Strategy cited the risks posed by crypto's fast payment capabilities and tools that obscure the source of funds, such as mixers and AI-assisted splitting of payments. While crypto donations are currently legal, the committee believes the existing framework lacks the necessary tools and staff to effectively verify donors and prevent abuse. They propose including the moratorium in the Representation of the People Bill. Reform UK, led by Nigel Farage, is the first European political party to accept crypto donations, though the total value remains unclear. The committee also acknowledged that a direct ban wouldn't eliminate all risks, as funds could be converted to traditional currency before donation, and recommended granting the Electoral Commission greater powers to compel information from financial institutions and crypto platforms.

(Source：CoinDesk)