- A UK cross-party committee urges an immediate moratorium on crypto donations to political parties.
- The call cites national security concerns and the “unnecessary and unacceptably high risk” to electoral integrity.
- The move follows crypto-linked donations to Reform UK and a push by Labour MPs for a ban.
- Recommendations include stricter reporting thresholds and longer sentences for foreign finance violations.
On Wednesday, March 12, 2026, a UK cross-party parliamentary committee urgently called on the government to halt cryptocurrency donations to political parties. The Joint Committee on the National Security Strategy published a report demanding an “immediate moratorium” until stronger safeguards are established. This proposal aims to amend the Representation of the People Bill ahead of the next general election.
Consequently, the committee labeled crypto donations an “unnecessary and unacceptably high risk” to political finance integrity. “We see no democratic imperative to permit the use of crypto in political finance until adequate safeguards are in place,” the report stated. It also referenced nations like Ireland, which have banned such donations over foreign interference fears.
The recommendation arises amid escalating scrutiny of crypto-linked money in British politics. Reform UK recently disclosed a $4 million donation from crypto investor Christopher Harborne in late 2025. This followed a record $12 million gift from the same donor in the previous quarter, as Reform UK became the first major party to accept crypto.
Meanwhile, the committee proposed specific regulatory changes to address these concerns. These include lowering the donation disclosure threshold from roughly $14,900 to $668. It also advocated for creating a Political Finance Enforcement Unit and increasing maximum custodial sentences for foreign financing violations to three years.
The push for a moratorium follows earlier political pressure, including a February 26 warning from committee chair Matt Western. In January, seven senior Labour Party MPs also urged Prime Minister Keir Starmer to ban crypto donations. They argued cryptocurrency can obscure fund sources and enable micro-donations below disclosure thresholds, exposing UK politics to foreign influence.
Currently, political cryptocurrency donations remain legal in the UK under Electoral Commission guidance. However, lawmakers reportedly began considering a ban as early as December 2025. The committee’s report directly cites growing foreign state threats aiming to influence UK positions on critical international issues.
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