The UK government is moving toward a temporary ban on political donations made through cryptocurrencies after a fresh review raised concerns about foreign money entering British politics.
Summary
- Keir Starmer confirmed a moratorium on crypto political donations during House of Commons questioning Wednesday
- UK lawmakers linked crypto donations to foreign interference risks and weak transparency in elections
- Proposed ban would stay until Parliament and Electoral Commission approve stronger donation safeguards
Prime Minister Keir Starmer confirmed on March 25 that the government will pursue a moratorium while wider safeguards are prepared. Starmer told the House of Commons that the government will act to protect the country’s political system. He said,
”That will include a moratorium on all political donations made through cryptocurrencies.”
The move followed the Rycroft Review, which examined foreign financial interference in UK politics. A parliamentary committee also backed an immediate ban on crypto political donations until stronger rules are in place.
The government said crypto donations will be blocked until the rules are strong enough to deal with untraceable money and foreign interference. The plan is tied to wider efforts to tighten political finance rules under the Representation of the People Bill.
Official bill material says the proposed change would ban or pause cryptocurrency donations while further review takes place. The same material also links the policy to risks from anonymous payment methods in elections.
Furthermore, the change is not law yet. The Representation of the People Bill is still at committee stage in the House of Commons and must pass both Houses of Parliament before receiving royal assent.
The government said the measure would take retrospective effect from March 25, 2026. Once the law comes into force, parties, candidates, and other regulated groups would have 30 days to return unlawful donations received during that period before enforcement can begin.
Ban stays until regulators approve the framework
The government said the moratorium would remain in place until Parliament and the Electoral Commission are satisfied that the rules are robust enough to support confidence and transparency in this area. That means the restriction would not end automatically after passage.
The issue has gained attention since Reform UK began accepting crypto donations in 2025. The next UK general election must be held by August 15, 2029, which gives lawmakers time to decide whether a permanent framework will replace the temporary ban.
Be the first to comment