UK national security committee chair: "Crypto political donations should be temporarily suspended until the general election"

The chair of the UK Parliament’s Joint Committee on the National Security Strategy has urged a temporary suspension of political donations in virtual assets (cryptocurrencies) until the general election.

According to crypto-focused outlet Cointelegraph on the 26th, Chair Matt Western, in a letter to Steve Reed, Secretary of State for Housing, Communities and Local Government, said concerns are growing over foreign actors’ interference in political funding ahead of future elections. He recommended that the Representation of the People Bill include a “temporary moratorium” on crypto donations.

Western said he is concerned that “foreign states’ intent to interfere in UK political funding could intensify as the next general election approaches,” adding that “as the security environment deteriorates and the UK’s military role in Europe expands, incentives may increase to influence the UK’s political stance on issues such as Ukraine or relations between the United States and the European Union (EU).”

Previously, in January, several select committee chairs, including Western, argued the bill should include a blanket ban on crypto political donations. However, the bill submitted to the House of Commons on the 12th did not include such a provision.

Western also proposed that, when the Electoral Commission draws up guidance on crypto donations, it should require the use of only services registered with the UK Financial Conduct Authority (FCA). He further argued that funds routed through mixers—anonymous crypto services—or with unclear provenance should be prohibited, and that parties receiving crypto should be required to convert it into fiat currency within 48 hours.

Over the longer term, he suggested establishing a national-level policing body dedicated to overseeing political finance and responding to foreign interference. He noted that national enforcement responsibility for political funding and foreign-interference risks is currently fragmented across the Electoral Commission, the Metropolitan Police, counter-terrorism policing, the National Crime Agency (NCA), the Security Service (MI5), and local police forces.

Meanwhile, the UK’s next general election must be held by mid-2029. The Representation of the People Bill is set for its second reading in the House of Commons on the 2nd of next month.