Britain Prohibits Political Cryptocurrency Donations to Block Foreign Interference

British Prime Minister Keir Starmer announced a complete ban on cryptocurrency donations to political parties, citing concerns about foreign interference in democracy. The decision particularly impacts Reform UK, one of the few British parties that accepts digital currency contributions.

LONDON — Britain’s Prime Minister Keir Starmer declared Wednesday that political parties across the nation will no longer be permitted to receive cryptocurrency contributions, warning that questionable financing presents a serious threat to democratic processes.

During his weekly appearance before Parliament, Starmer emphasized his administration’s commitment to safeguarding Britain’s political system from external manipulation. “We will act decisively to protect our democracy,” he stated, announcing “a moratorium on all political donations made through cryptocurrencies” during the Prime Minister’s Questions period.

The prohibition will significantly impact Reform UK, the hard-right organization headed by Nigel Farage, which stands among Britain’s rare political groups that welcomes digital currency contributions.

Additionally, the government established a yearly limit of 100,000 pounds ($134,000) for contributions from British citizens residing overseas. Electoral Commission data shows Reform received 12 million pounds over the previous year from Christopher Harborne, a British entrepreneur operating from Thailand.

Richard Tice, Reform UK’s deputy leader, accused the administration of attempting “to stop the incredible progress of Reform.”

Despite controlling merely eight seats out of 650 in the House of Commons, the party maintains a consistent lead over both Starmer’s Labour Party and the Conservative opposition in polling data.

Speaking to GB News, Tice argued that “cryptocurrencies are a perfectly legitimate way of investing, of earning within the law.”

While Britain maintains rigorous spending restrictions for political campaigns, parties may receive unlimited contributions provided donors are registered U.K. voters or domestically registered businesses.

Philip Rycroft, a former high-ranking government official, released a report Wednesday warning that anonymous digital currency donations might serve as a conduit for “foreign money into the political system in the U.K.”

The government commissioned Rycroft’s investigation into overseas financial interference last December following multiple notable incidents, including the imprisonment of ex-Reform UK representative Nathan Gill for accepting payments to deliver pro-Russian speeches in the European Parliament.

Rycroft noted that “the number of donations made in cryptoassets is currently unknown” and recommended a temporary prohibition on cryptocurrency contributions until regulatory frameworks align with technological advances.

While Parliament must approve Starmer’s proposed modifications, the government indicated the restrictions will take effect retroactively from Wednesday.

Starmer’s center-left administration has previously implemented additional measures designed to fortify democratic institutions, including stricter corporate contribution regulations for political organizations and reducing the minimum voting age to 16 from 18.