UK Backbenchers Committee Calls for Outright Ban on Crypto Political Donations
A committee of seven senior Labour MPs has urged the UK government to impose a total ban on crypto donations to political parties, citing concerns over foreign influence, regulatory evasion, and the potential for artificial intelligence to obscure the source of funds. The committee, which includes former minister Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah, and Matt Western, wrote to Prime Minister Kier Starmer to use the upcoming elections bill to make “explicit provision to disallow cryptocurrency donations to political parties and politicians.”
According to The Guardian, the committee’s concerns were raised during evidence sessions, where red flags included the use of crypto to influence elections, the application of technologies that fall outside UK regulations, and the potential for AI to further obscure the source of funds. The committee’s call for a ban on crypto donations is not new, as the British government had previously announced plans to restrict the use of crypto in political contributions.
Pressures Mount to Restrict Crypto Donations to UK Political Parties
The call for a ban on crypto donations comes after the political party Reform UK received its biggest crypto donation of £9 million ($12 million) from crypto investor Christopher Harborne ahead of local elections in May, according to Electoral Commission figures. Former senior civil servant Philip Rycroft is currently reviewing foreign financial interference in UK politics, which includes a focus on crypto, but the review is not expected to conclude until March 2026.
Concerns Over Anonymous Donations
Liam Byrne, who chairs the business and trade select committee, stressed that the Labour MPs’ committee is concerned that political finance “must be transparent, traceable and enforceable.” He added that crypto can obscure the true source of funds, enable thousands of micro-donations below disclosure thresholds, and expose UK politics to foreign interference. Byrne emphasized that the UK must not wait until a scandal erupts, making clear that the call is not against innovation.
“If the elections bill doesn’t ban cryptocurrency donations, I will move amendments to make sure it does, and I know scores of MPs will back it. Anonymous money has no place in British democracy,” Byrne said. Another senior Labour backbencher, Emily Thornberry, who chairs the foreign affairs committee, said that banning crypto would protect the UK’s democracy, citing the use of crypto as a “Russian slush fund of choice.”
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