Britain Considers Banning Cryptocurrency Donations to Politicians
Date: 2025-12-03 Author: Henry Casey Categories: IN WORLD
The UK government is conducting detailed consultations on whether to completely ban political donations in digital assets. According to Politico, citing sources familiar with the discussions, the initiative is expected to be included in the new Electoral Bill, which is already being prepared for publication. This potential measure could primarily affect Reform UK, Nigel Farage's political party, which became the first in the country to offer cryptocurrency donations.
The party began accepting such transfers at the beginning of the year, positioning them as part of a larger "crypto revolution." In October, Farage told Reuters that Reform UK had received several crypto donations after the Electoral Commission confirmed the first historic case. A dedicated portal was even created for this purpose, and the party itself promised enhanced oversight to prevent attempts at abuse.
The government acknowledges that the possibility of a ban is indeed being explored. Officials emphasize that the current party funding system is vulnerable to external interference, and the new rules should "ensure election protection" and preserve the ability of political parties to independently fund themselves. Specific details are expected to be included in the draft bill.
The topic of cryptocurrency donations has been a subject of political debate long before the current proposals. Pat McFadden, Liam Byrne, and Phil Brickill have previously spoken out about the need for restrictions. They emphasized that tracing the origins of crypto assets is extremely difficult, increasing the risk of hidden foreign funding or money laundering attempts. Independent transparency experts confirm these concerns.
At the same time, the Labour Party is promoting its own initiatives that propose stricter due diligence requirements for all donors, including combating shell companies that can channel funds of unclear origin. Interest in cryptocurrencies as a tool of foreign influence intensified following the high-profile case of former Reform Wales chairman Nathan Hill, who was sentenced to more than ten years in prison for paying for pro-Russian speeches in the European Parliament. Farage called Hill a "rotten apple," claiming he had betrayed the party.
Interestingly, while a possible ban is being discussed in the UK, crypto donations were actively used in the US during the presidential campaign. Then-candidate Donald Trump announced he would accept donations in a number of cryptocurrencies through Coinbase Commerce in 2024. The Winklevoss brothers donated $1 million in Bitcoin to Senate candidate John Deaton, Kamala Harris's team also collected crypto donations, and Ripple Labs co-founder Chris Larsen donated large sums of XRP to support her campaign.
