Prime Minister Keir Starmer’s government in the U.K. has declared an immediate moratorium on crypto donations to Britain’s political parties. The development comes amid rising concerns around the use of digital currencies to hide the source of political funding.
The move, announced on Wednesday, is part of a wider effort to stop foreign money from entering British politics through channels that are harder to trace and regulate.
Alongside the crypto measure, the government also levied a £100,000 (roughly $133,700) annual cap on political donations from British citizens living overseas.
The U.K. government plans to make the ban law by adding it to the Representation of the People Bill. Communities Secretary Steve Reed said the rule will also cover any crypto donations political parties receive from Wednesday onward.
Review warns foreign money could enter through crypto channels
Prime Minister Starmer announced the ban after the release of the 50-page Rycroft Review, an independent report led by former senior civil servant Philip Rycroft.
In the report Rycroft said, “The government should legislate in the Representation of the People Bill to introduce a moratorium on political donations made in crypto assets.”
The report pointed out that donations below 500 British pounds do not go through the usual checks, while parties only need to report donations once they reach higher limits.
Rycroft said no one knows how much crypto has entered UK politics so far because no donation has yet crossed the level that would force parties to report it to the Electoral Commission. Still, he said, crypto donations may be allowed in the future under strict rules.
According to Rycroft, crypto donations should only be allowed under strict checks by the Electoral Commission and through UK-regulated exchanges. He also warned that foreign interference in UK politics from Russia, China, and Iran remains a serious and growing threat.
Bitcoin donation ban puts Reform UK in the spotlight
The ban puts direct pressure on Reform UK, the only major British party that openly asked for crypto donations. Last year, the party became the first major UK party to accept Bitcoin donations.
Thailand-based Christopher Harborne, Reform’s biggest donor, gave the party £12 million over the past year, including a single £9 million (roughly $12 million) donation.
The Electoral Commission also said Reform did not provide any crypto wallet addresses, which made it harder for regulators to check where the money came from.
During Starmer’s announcement, Reform UK MPs walked out of the House of Commons. Starmer then told MPs that one party leader was ready to say anything if money was involved.
UK lawmakers call for stricter rules on political crypto donations
Pressure was already building up even before the government’s decision was made. On 18 March, a cross-party parliamentary committee called on the UK government to immediately ban crypto donations to political parties.
The committee also called on the government to make changes to the Representation of the People Bill, which will include a binding moratorium. It also said that this ban will stay in place until the UK has strong and enforceable safeguards in place.
Some Labour MPs had also raised concerns back in January regarding tracing political donations.