Some UK MPs, led by Joint Committee on National Security Strategy Chairman Matt Western, are pushing for a temporary ban on political donations in crypto due to concerns about foreign interference.
A letter to Secretary of State for Housing, Communities and Local Government Steve Reed proposes a temporary moratorium on cryptocurrency donations to political parties until the Electoral Commission produces statutory guidance.
In the letter, Western raised concerns about “the intention of a foreign state to intervene in the political financing of the United Kingdom” as there is “no clear national direction on the application of the risk of political financing and foreign interference”.
“As the security environment deteriorates and the UK’s military role in Europe increases, interest in influencing the UK’s policy positions (for example on Ukraine or on US-EU relations) is likely to increase,” Western said.
He urged the Electoral Commission to introduce interim safeguards, such as only allowing political parties to process cryptocurrency donations through virtual asset service providers registered with the Financial Conduct Authority, and accepting contributions where there is high confidence in identifying the ultimate source of the funds.
It also suggests banning the use of crypto mixers or cups that can be used to mask the provenance of assets, as well as requiring political parties to convert donations to sterling within 48 hours of receipt.
Additionally, Western recommended stricter asset checks for donors and revised penalties for campaign finance offenses, as well as higher penalties for violations involving foreign money and expanded powers for regulators to prosecute violations.
Last month, Western, along with a group of other committee chairs, pushed for a total ban on cryptocurrency donations by including a provision in the Representation of the People bill. However, this was not included in the legislation when the bill was presented to the House of Commons on February 12.
According to a BBC report, Reform UK was the first party in Westminster to accept cryptocurrency political donations in the UK, led by pro-crypto figure Nigel Farage, who announced the move after attending the Bitcoin 2025 conference in Las Vegas.
However, details on the party’s official website state that it does not accept anonymous donations and applies eligibility checks to ensure funds come from UK-registered businesses or individuals on the electoral roll, with contributions over £500 subject to standard compliance procedures.
Cryptocurrency donations increase in the United States
Around the world, cryptocurrency donations became a defining part of the US election cycle last year, with several political figures, including current President Donald Trump, embracing digital asset fundraising. Trump’s campaign has started accepting cryptocurrency contributions during the 2024 race.
As previously reported by crypto.news, Rep. Mike Collins of Georgia also announced plans to accept cryptocurrency donations last year.
The Federal Election Commission permits cryptocurrency contributions to political committees, provided they comply with existing contribution limits, disclosure standards, and other reporting requirements.