UK’s Starmer backs pause on crypto political donations, citing ‘illicit finance’ risks

UK Prime Minister Keir Starmer announced that the government will implement a moratorium on all political donations made through cryptocurrencies, citing growing risks associated with illicit finance and foreign interference. This move follows recommendations from a government-commissioned review led by Philip Rycroft, which suggested a temporary halt until greater transparency can be ensured by regulators. The pause is intended as a stopgap measure while regulations catch up with the technology. Political parties will be required to return any crypto donations received after the rules take effect, with potential criminal penalties for non-compliance after a grace period. The issue has gained political traction, particularly after the Reform UK party received significant crypto donations, and lawmakers had previously urged an immediate ban.

(Source：The Block)