UK lawmakers urge total ban on crypto donations to political parties

UK Lawmakers Call for Total Ban on Crypto Donations to Political Parties

Committee chairs argue that digital currency contributions threaten transparency and expose British politics to foreign influence.

The chairs of seven parliamentary committees submitted a letter on Sunday, January 11, requesting that the UK government consider banning crypto donations to political parties completely in the country. This move deepens discussions that have been ongoing for several months regarding cryptocurrencies in British elections.

"Cryptocurrency can hide the real source of funds, allow many small donations that fall below disclosure limits, and open UK politics to foreign influence." — Liam Byrne, Business, Energy and Industrial Strategy Committee Chair.

The correspondence, endorsed by Liam Byrne along with six other committee leaders, contends that such donations compromise clarity and oversight. Interestingly, earlier in July 2025, Patrick McFadden, a Secretary of State, publicly noted that the government was already evaluating such a decision.

The Reform UK Controversy

Debates regarding crypto donations intensified in December 2025 when the Electoral Commission revealed that Reform UK had accepted a donation worth £9 million (approx. $12 million) from Christopher Harborne, a Thailand-based investor with a 12% stake in Tether. While the donation was in traditional currency, the association with crypto wealth triggered investigations by Labour and the Liberal Democrats.

The UK Parliament is currently developing its overall crypto regulatory framework, having passed regulations that perceive cryptocurrencies as property as of December 2025.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.