The United Kingdom is considering banning election donations made in cryptocurrencies.

• Ban on cryptocurrency donations gains parliamentary support.
• Electoral transparency becomes a focus of the Labour government.
• Cryptocurrency regulation puts pressure on political financing rules.

Chairs of seven UK parliamentary committees have intensified their calls for a total ban on cryptocurrency political donations, broadening a debate that has been ongoing for months about the role of these assets in election financing. The mobilization followed a letter sent to the government, signed by Liam Byrne and six other committee chairs, advocating for stricter changes to the legislation.

In the document, parliamentarians argue that cryptocurrency donations hinder transparency, traceability, and oversight of money used by political parties. The central argument is that, without clear control mechanisms, the current model could create loopholes for abuse and compromise the integrity of the British electoral system.

“Cryptocurrencies can conceal the true origin of funds, allow thousands of micro-donations below disclosure thresholds, and expose UK politics to foreign interference,” Byrne said in a statement. “The Electoral Commission has warned that current technology makes these risks exceptionally difficult to manage.”

The initiative increases pressure on the Labour government, which has been evaluating the issue since mid-2025. At the time, Cabinet Minister Pat McFadden had already publicly raised the possibility of banning political donations made in cryptocurrencies. Internally, the understanding is that this type of financing represents a risk to electoral integrity, although the legal and technical complexities make it difficult to include the measure in the next Election Bill.

The debate gained further momentum when Reform UK announced it would begin accepting donations in bitcoin and other cryptocurrencies. The decision was presented by the party leader, Nigel Farage, as part of a broader crypto-focused agenda. However, the initiative provoked an immediate reaction from political opponents and reinforced calls for clearer limits.

The issue deepened after the revelation of a record donation of £9 million made to Reform by a cryptocurrency investor residing abroad. Although the amount was transferred in traditional currency, the origin of the fortune reignited questions about conflicts of interest and the indirect influence of the cryptocurrency market on British politics.

This pressure is occurring as the UK structures its regulatory framework for cryptocurrencies. Parliament has already recognized digital assets as a form of property, and the government plans to bring the sector under traditional financial rules by 2027. In parallel, the Financial Conduct Authority is working on consolidating a broader regulatory regime, with implementation phases planned from 2026 onwards.

If it goes ahead, the ban would put the United Kingdom on a different path from countries like the United States, where political donations linked to cryptocurrencies remain permitted at the federal level, despite specific restrictions adopted by some states.