Summary
- The UK government has introduced new regulations aimed at limiting foreign financial influence in elections, which include restrictions on donations from individuals in their first year of UK residency and enhanced scrutiny of corporate contributions.
- These regulations build on a previous ban from March on cryptocurrency donations and could adversely affect Nigel Farage’s Reform UK party, which has relied on funds from crypto billionaires Christopher Harborne and Ben Delo.
- Harborne has registered to vote in the UK, while Delo has expressed his plans to do so.
The UK government has initiated a new effort to restrict foreign funding in political campaigns, potentially affecting the financial support from crypto billionaires who have been key benefactors of Nigel Farage's Reform UK.
Announced on Monday, the new measures extend a £100,000 limit on foreign donations, which has been in effect since March. This cap now includes the first year of residency for donors, preventing newcomers from relocating to the UK and immediately making large contributions.
Corporate donations will be evaluated based on post-tax profits over a five-year period instead of revenue, aiming to exclude companies with high turnover but unclear operations. Additionally, candidates must demonstrate that any funding received before a campaign originated from "legitimate sources."
These reforms build on the March legislation that limited overseas contributions and prohibited donations in cryptocurrency until proper regulations are established. At that time, Reform UK was the only major political party in Britain to accept cryptocurrency donations. The bill will proceed to the Commons for its final stages next week.
Supporters of Reform UK in Crypto
The new residency rules could significantly impact the crypto billionaires supporting Reform UK. Christopher Harborne, based in Thailand and holding a 12% interest in stablecoin issuer Tether, has contributed a total of £12 million to the party and has now registered to vote in the UK.
Ben Delo, co-founder of the BitMEX exchange and based in Hong Kong, has donated approximately £4 million to Reform. Delo, who was pardoned by President Donald Trump in 2025 after pleading guilty to Bank Secrecy Act violations, has indicated his plans to return to the UK, which would mean he is limited to donating £100,000 for the first year.
Neither Harborne nor Delo made their donations in cryptocurrency, and Reform UK asserts that they have adhered to existing regulations.
Farage and “Posh George” Controversy
This crackdown follows a Sunday Times report alleging that Farage neglected to report years of "in-kind" assistance, which included staff, security, and housing, provided by George Cottrell, known as “Posh George,” who is a long-time associate, convicted fraudster, and crypto-gambler.
Cottrell, who admitted to wire fraud in the U.S. following a sting operation in 2016, is now pursuing a pardon from President Trump and has significant ties to the cryptocurrency sector. According to the Sunday Times, he became a pivotal figure in Tether.bet, an offshore casino that accepted wagers in cash or cryptocurrency without a UK gambling license. A Polymarket account connected to Cottrell has reportedly placed millions on geopolitical bets, as noted by blockchain investigator ZachXBT.
Liberal Democrat MP Josh Babarinde has written to the Parliamentary Standards Commissioner requesting an inquiry into Farage's alleged "failure to declare financial support" received from Cottrell.
Farage, who is already under scrutiny over an undisclosed £5 million ($6.7 million) donation from Harborne, denies the need to disclose the benefits from Cottrell, while Cottrell claims he did not expect any compensation in return. Decrypt has reached out to Nigel Farage for a statement.