UK parliamentary committee chairs call for blanket ban on crypto donations to politics as election funding debate intensifies

Chairs of seven UK House of Commons select committees have sent a formal letter to the government urging a blanket ban on crypto donations to political parties.

According to local media reports cited by The Block on the 12th (local time), the chairs submitted an official letter calling for a prohibition on political donations in virtual assets (cryptocurrencies), as concerns have grown that crypto could undermine the transparency and traceability of UK election funding.

The letter was signed by seven chairs, including Liam Byrne, chair of the Business and Trade Committee. They argued that crypto donations can obscure the source of funds, enable large volumes of small contributions below disclosure thresholds, and heighten the risk of political interference by overseas actors. In an interview with The Guardian, Byrne said, "The Electoral Commission has also warned that in today’s technological environment it is extremely difficult to manage these risks."

The move is adding pressure to an ongoing internal review within the government. The UK government has been examining the possibility of banning crypto political donations since July 2025, but reports suggest related provisions are unlikely to be included in an upcoming elections bill due to the complexity of designing the system.

The controversy gained momentum last year when the right-leaning party Reform UK became the first in the UK to announce it would accept crypto donations such as Bitcoin. Party leader Nigel Farage framed the move as part of a "crypto revolution," pledging to introduce a strategic Bitcoin reserve and cut capital gains tax if elected. The party is said to have subsequently received the UK’s first registered crypto donation, but the amount was not disclosed.

Debate intensified further after Electoral Commission records late last year revealed that Reform UK had received a large £9 million (about $12 million) donation from Christopher Harborne, a crypto investor living in Thailand. Although the donation was made in fiat currency, reports that a significant share of Harborne’s wealth stems from crypto prompted the Labour Party and the Liberal Democrats to call for an investigation into potential conflicts of interest.

UK political circles expect the letter to further accelerate discussions on tightening rules governing the relationship between crypto assets and election funding.