The UK government is advancing plans for a moratorium on political donations made through cryptocurrencies, following an independent review and pressure from multiple high-ranking politicians.
Cointelegraph reported on Wednesday that the Rycroft Review, an independent inquiry into foreign financial interference in the UK’s political and electoral systems, recommended a moratorium on crypto donations to political parties.
New statements from UK Prime Minister Keir Starmer on Wednesday have confirmed that the government will pursue the temporary ban.
“I can tell the House we will act decisively to protect our democracy. That will include a moratorium on all political donations made through cryptocurrencies,” said Starmer during Prime Minister’s Question Time on Wednesday.
Several members of parliament, including the chair of the security committee, have been pushing for a full ban this year, warning that foreign states could exploit crypto payments to influence UK politics.
UK Prime Minister Keir Starmer pledged a moratorium on all crypto political donations. Source: YouTubeUnder the new measure, crypto will be prohibited for political donations until robust regulations are in place to prevent untraceable funds and foreign interference in UK elections, according to a separate government statement on Wednesday.
Bill still has to pass and become law
The ban would require amending the Representation of the People Bill, and the government said the changes would take “retrospective effect” from March 25.
The legislation is at the committee stage in the House of Commons. It needs to pass through both the House of Commons and the House of Lords, then receive royal assent from King Charles III to become law.
The legislation is still at the committee stage in the House of Commons. Source: UK Parliament“Once the legislation comes into force, political parties and regulated entities like candidates and MPs will then have 30 days to return any unlawful donations they may have received in the interim, after which enforcement action can be taken,” the government said.
Related: Top UK Labour lawmakers push to ban political donations made in crypto
Reform UK was the first political party in the country to accept crypto donations in May last year, with leader Nigel Farage announcing at the Bitcoin 2025 conference in Las Vegas that the group would accept Bitcoin and other cryptocurrencies from eligible donors.
Ban will not be lifted until sign-off from government
Once the ban comes into force, it won’t lift until “Parliament and the Electoral Commission are satisfied that the regulatory environment is robust enough to ensure confidence and transparency in donations being made in this way.”
The next general election in the UK must be held by Aug. 15, 2029.
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Source: https://cointelegraph.com/news/uk-forges-ahead-political-crypto-donations-ban?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
