UK Lawmakers Push Starmer to Ban Crypto Donations Amid Foreign Interference Fears

Seven senior UK Labour Party lawmakers, including chairs of key parliamentary committees, have urged Prime Minister Keir Starmer to prohibit cryptocurrency donations to political parties. They argue that such donations obscure the true source of funds and may facilitate foreign interference. The call comes as the government prepares an elections bill, expected later this month.

The lawmakers emphasized that political finance must remain transparent, traceable, and enforceable. Business and trade committee chair Liam Byrne highlighted that cryptocurrency does not meet these standards and can enable micro-donations below disclosure thresholds.

The proposed ban would directly impact Reform UK, which in May 2025 became the first UK political party to accept crypto donations. The party received a record £9 million donation from crypto investor Christopher Harborne in December 2025, though the donation was made in fiat currency.

Why Did This Happen?

The lawmakers' letter was motivated by concerns about the risks of foreign interference and the challenges of enforcing regulations in the digital asset space. The Electoral Commission has raised concerns about the difficulty of tracking crypto transactions.

The move reflects broader global trends, with several democracies already imposing restrictions on crypto donations. In the UK, Labour MP Pat McFadden first raised the issue publicly in July 2025.

How Did Markets Respond?

The proposal has sparked debate among advocacy groups and political parties. The UK Anti-Corruption Coalition supports the ban, stating it aligns with the government's stance on foreign interference and illicit finance.

Reform UK has defended its pro-crypto policy, which includes plans for a Bitcoin reserve and tax cuts for digital assets. However, the party has confirmed it does not accept anonymous crypto donations.

What Are Analysts Watching Next?

The Labour government has not yet decided whether the elections bill will include a crypto donation ban. Government sources suggest the complexity of implementing such restrictions may delay its inclusion.

Analysts are also watching the broader regulatory developments in the UK's digital asset landscape. In December 2025, Parliament passed legislation recognizing digital assets as property, and the government plans to regulate crypto like traditional financial products by 2027.

The debate over crypto donations in the UK highlights the growing intersection between digital assets and electoral integrity. As the government prepares its elections bill, stakeholders are closely monitoring how it will address the unique challenges posed by cryptocurrency in the political arena.