Labour lawmakers in the UK have formally proposed amendments to permanently ban cryptocurrency donations to political parties and election candidates. Led by MP Liam Byrne, the amendments to the Representation of the People Bill garnered at least 20 parliamentary signatures by Thursday afternoon. Current rules allow in-kind donations but lack clear provisions on digital assets. If passed, accepting crypto contributions would become illegal.
Anonymous funding risks drive proposal
Byrne said the core risk lies in the difficulty of tracing donation sources, which opens doors for anonymous and impermissible funding. He urged colleagues to back the amendments, arguing that stronger safeguards are needed to protect democratic integrity. The debate is scheduled for next Tuesday during the bill's report stage. Supporters believe a permanent ban is the most straightforward way to close regulatory loopholes that traditional finance rules cannot address.
Farage under microscope over crypto-linked gift
The legislative push comes as Reform UK leader Nigel Farage faces renewed parliamentary scrutiny over crypto-related financial ties. Reports revealed that Farage received a £5 million (approx. $6.7 million) gift in early 2024 from Christopher Harborne, a Thailand-based British crypto investor. Bankers involved flagged concerns and submitted a Suspicious Activity Report to the National Crime Agency.
Further attention has been drawn to Farage's association with George Cottrell, a convicted fraudster linked to the offshore crypto gambling platform Tether.bet. Labour MPs argue such cases demonstrate why existing rules need stronger protections against opaque funding.
Farage has denied any wrongdoing, stating the £5 million was a private gift, not a political donation, and was received before he became an MP. He insists no laws were broken. Parliament's decision next week will determine whether crypto donations face a permanent ban in UK politics, marking a significant shift in campaign finance rules.