UK lawmakers are raising alarms about crypto donations to political parties, saying they could let foreign money influence politics.
The Joint Committee on the National Security Strategy has called for an immediate ban on crypto donations until stronger rules are in place. The committee warned that tools like mixers, privacy coins, cross-chain swaps, and AI-driven micro-donations could hide where funds come from and let large contributions bypass reporting limits.
Chair of the committee, Matt Western MP, said: “Few things are more important than maintaining trust in our politics. The idea that politicians can be ‘bought’ with foreign money is increasingly corrosive.”
The committee wants the government to amend the Representation of the People Bill to prohibit crypto donations for now. Experts are divided—some say regulated crypto systems can be transparent, while others warn that a blanket ban might push donations offshore without solving the risks.
Recently, some MPs sent a letter to Steve Reed, asking the Electoral Commission to ensure that crypto donations only go through FCA-registered virtual asset providers and that the source of funds is verified. They also suggested banning mixers, tightening wealth checks, and converting donations into pounds quickly.
Some UK parties, like Reform UK, already accept crypto donations, but they require donor verification and do not take anonymous contributions.
In short, lawmakers are pushing for stricter rules or a temporary ban to protect the integrity of political funding in the UK.
