Britain has formally banned all cryptocurrency donations to political parties. The government, led by Prime Minister Keir Starmer, says the move is intended to prevent untraceable funds from entering UK politics. Under the new rules, British citizens living overseas will face an annual cap of about $134,000 (£100,000) on regulated transactions such as political donations and loans. Officials said the changes take effect on March 25 and will be applied retroactively through amendments to the Representation of the People Bill.
The move comes amid concerns about foreign interference, notably from Russia, in UK elections. Unlike heavily regulated fiat currencies, cryptocurrency has long operated in a legal gray area, and such gaps reportedly allowed a UK citizen to donate $12 million to Nigel Farage, leader of Reform UK. The donation drew considerable attention from MPs, but there had been few legal avenues to challenge it. However, the Wednesday release of the Rycroft Review provided the legal basis for the ban and recommended giving the Electoral Commission broader powers to identify and investigate financial wrongdoing.
Steve Reed, the Housing, Local Government and Communities Secretary, stressed the importance of the measure, saying, ‘foreign interference and illicit funds threaten our elections’ fairness.’ He added that ‘the UK will now lead the world in eradicating these rising threats… deter hostile foreign states seeking to exploit Britain by sowing division.’ ‘It is our duty to protect the British people’s right to freely choose their government.’
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