Starmer to temporarily ban crypto donations to UK parties

The UK government has announced a ban on political donations made using cryptocurrency, according to Prime Minister Sir Keir Starmer. This decision follows an independent review aimed at tackling foreign financial interference in British politics. Alongside this measure, there will be a new limit imposed on donations from British citizens living abroad, capping these at £100,000 per year. These steps are among 17 recommendations proposed by Philip Rycroft, a former senior civil servant who conducted the review.

The government is still deliberating over how to respond to the remaining suggestions from the Rycroft review, which also recommends banning foreign-funded online political advertisements. The review itself was commissioned last year to address growing concerns about attempts by foreign actors to unduly influence the UK’s democratic processes. This came in the wake of several high-profile instances of interference, including the conviction of former Reform UK MEP Nathan Gill for accepting bribes to promote pro-Russian messaging.

Cryptocurrency donations have become a particular focus because of their potential to conceal the origins of funds. Reform UK stands out as the only Westminster party known to have accepted such donations, with its leader Nigel Farage announcing last May that the party would accept Bitcoin contributions. By October, Farage revealed the party had already received a small number of crypto donations. Under UK election law, political parties are required to verify that donations over £500 come from permissible sources such as individuals on the UK electoral register. However, to date, no crypto donations have been officially reported to the Electoral Commission. Reform UK has stated that all crypto contributions are converted to cash by a regulated third party, with the party itself holding no digital wallets, and insists it is compliant with legal obligations.

Housing Secretary Steve Reed emphasized the risks identified by the review, noting the anonymity of cryptocurrency transactions could enable the concealment of donors’ identities and make it easier to evade financial checks. He described this as a serious threat that harms public trust in the electoral system. The ban on crypto donations will remain in place until adequate regulation is established and approved by Parliament and the Electoral Commission. The measures will apply retrospectively, covering any crypto donations received from the date legislation is enacted. In addition, the new rules restricting overseas donations will be enforced across all upcoming UK elections, including English local, Scottish Parliament, and Welsh Senedd elections. Parties will have a 30-day window to return any donations exceeding the new limits once the regulations take effect, with criminal sanctions for non-compliance. The government plans to implement these provisions through amendments to the Representation of the People Bill.

Recent Electoral Commission data highlight Reform UK’s receipt of a record £9 million donation from Christopher Harborne, a cryptocurrency investor and aviation entrepreneur living in Thailand. Harborne, a British national, has previously supported the Conservatives under Boris Johnson’s premiership and gave significant funds to the Brexit Party, Reform UK’s predecessor. The Rycroft review draws attention to the challenges posed by foreign money in UK politics, citing the Gill case and MI5’s alert regarding Christine Lee to illustrate how interference occurs. The report concludes that foreign meddling in British political affairs is “real and persistent.” In response, at Prime Minister’s Questions, Sir Keir Starmer said the government is committed to taking decisive action to safeguard democracy, in line with the review’s recommendations

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