Concerns grow over transparency, foreign influence, and election security
Senior UK lawmakers are pushing for new restrictions on political funding, calling for a ban on donations made using cryptocurrencies. The proposal comes as the government prepares to introduce a wide-ranging elections bill, with officials warning that digital assets pose risks to transparency and democratic integrity.
Crypto Donations Raise Transparency and Security Risks
Seven Labour Party members of Parliament, all chairs of key parliamentary committees, have formally urged the Prime Minister to prohibit crypto-based political donations. In their view, cryptocurrencies can obscure the true source of funds, making it difficult to trace donors or enforce existing election finance rules.
Lawmakers argue that crypto enables thousands of small donations below disclosure thresholds and increases the risk of foreign interference in UK politics. The Electoral Commission has previously cautioned that current technology makes monitoring and enforcement particularly challenging in this area.
The proposal arrives ahead of local elections scheduled for May. However, government officials have signaled that implementing a crypto donation ban within the upcoming elections bill may be difficult due to the technical and regulatory complexity of digital assets. The bill is also expected to include major reforms such as lowering the voting age to 16.
A ban could directly affect parties that have embraced crypto-friendly policies. Advocacy groups focused on anti-corruption have backed the proposal, stating that allowing crypto donations conflicts with warnings about illicit finance and hostile state actors. Supporters argue the measure is not anti-innovation, but a necessary step to protect democratic systems.
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