Summary

  • Labour MPs are set to challenge the government next week to strengthen the political funding legislation by making the current temporary ban on crypto donations permanent, as reported by the Guardian.
  • This initiative follows significant donations to Nigel Farage's Reform UK from crypto billionaires Christopher Harborne and Ben Delo, which were not made using cryptocurrency.
  • The UK government had implemented a freeze on crypto political donations in March; these amendments aim to solidify that freeze into law while also reducing campaign spending limits.

Labour MPs are gearing up to compel the UK government to establish a lasting prohibition on political contributions made in cryptocurrencies, according to a report from the Guardian.

Members of Parliament from the all-party anti-corruption group are rallying support for four proposed changes to the Representation of the People Bill. Among these is a proposal to convert the government's existing moratorium on crypto donations into a permanent ban, which has reportedly gained substantial support from Labour MPs amid escalating scrutiny over the financial dealings of Reform UK and its leader, Nigel Farage.

Liam Byrne, the Labour chair of the business select committee advocating for the crypto ban amendment, stated that Reform UK politicians seem willing to go to "extraordinary lengths" to evade scrutiny of their financial situation. He urged his colleagues to endorse the amendments as a protective measure for democracy in the UK. By Thursday afternoon, his amendment had garnered at least 20 endorsements, according to the report.

Proposed Amendments

The crypto ban is one of several initiatives being proposed by the dissenting MPs. Former cabinet minister Anneliese Dodds has introduced an amendment aiming to reduce campaign spending limits by nearly one-third, from £34 million to £24.4 million, asserting that the UK is facing "an arms race in funding political campaigns." 

Yuan Yang, a supporter of the new prime minister, seeks to impose restrictions on the amount of funds a political party can hold at its inception, following revelations that Rupert Lowe's Restore Britain started with £2.5 million in undisclosed funds. A fourth amendment, proposed by Mark Sewards, would implement checks to ensure donations do not stem from foreign influences attempting to undermine British democracy.

Focus on Crypto Donations

The UK government enforced a moratorium on political donations in cryptocurrency in March, prompted by the Rycroft Review, which cautioned that the anonymity of digital asset transactions could facilitate the influx of foreign money into UK politics. 

Philip Rycroft, the former senior civil servant who authored the review, suggested a temporary "interlude" instead of a permanent ban to allow for regulatory measures to develop. However, the proposed amendment would permanently eliminate that option.

Advocates have called for a total ban for several months, highlighting the Electoral Commission's inability to trace cryptocurrency donations and referencing existing outright bans in Ireland and Brazil. In June 2025, Reform UK became the first major UK political party to accept crypto donations.