UK parliament: “Political parties must immediately halt crypto donations”…growing concerns over foreign interference

The UK Parliament has said political parties should suspend cryptocurrency donations altogether, citing opaque funding sources.

According to Cointelegraph on the 17th (local time), the Joint Committee on the National Security Strategy, a cross-party parliamentary committee in the UK, urged in a report released that day that cryptocurrency donations to political parties be immediately paused.

The committee stressed that crypto donations should not be permitted until the UK Electoral Commission sets out clear regulatory guidance. To that end, it also proposed amending the “Representation of the People Bill.”

Specifically, the committee said crypto donations pose an “unnecessary and unacceptably high risk” to the political finance system. It flagged that, by nature, cryptocurrencies can be used to obscure the source of funds or split donations into small amounts to circumvent disclosure thresholds—creating a channel that foreign actors could exploit to exert influence.

It also set out measures to improve the system. The committee recommended establishing a “Political Finance Enforcement Unit” dedicated to overseeing political finance, and lowering the donation disclosure threshold from £11,180 to £500. It also included raising the maximum sentence for illegal acts involving overseas funds to three years.

The recommendations come as vigilance over crypto-linked funding grows in UK politics. Reform UK previously became the first UK political party to accept crypto donations last year, and controversy intensified after it was disclosed that it had received donations worth several million dollars from crypto investor Christopher Harborne.

Labour MPs have also previously called for a ban, arguing that crypto donations could increase the risk of foreign interference. In fact, some countries, including Ireland, have already banned crypto donations to political parties for similar reasons.