British Labour MPs push to make cryptocurrency donation ban permanent

Labour MPs plan to push for a permanent ban on political donations in cryptocurrencies

It has been reported that British Labour MPs are preparing to force the government to permanently ban political donations in the form of cryptocurrencies. Parliament\'s cross-party anti-corruption group is gathering support for four amendments to the Representatives of the People Act. One of the amendments would change the government\'s current moratorium on cryptocurrency donations to a permanent ban. Reported that against the backdrop of growing controversy over the financial issues of the British Reform Party and its leader Nigel Farage, this proposal is gaining widespread support from Labour MPs.

Liam Byrne, Labour chairman of the Business Select Committee, which is pushing the amendment to the cryptocurrency ban, said Reform Party politicians seemed willing to evade scrutiny of their finances \"at all costs\" and urged colleagues to support the amendments to preserve British democracy. It was reported that as of noon Thursday, his amendment had received at least 20 signatures.

Multiple measures are advanced simultaneously

The cryptocurrency ban is just one of many measures these lawmakers hope to introduce. Former cabinet minister Annelys Dodds has proposed an amendment that would cut the campaign spending limit by nearly a third, from £ 34 million to £ 24.4 million. She believes the UK is facing a \"political campaign finance arms race.\" Yuan Yang, an ally of the incoming prime minister, wants to limit the amount of money the party can hold at the beginning of its establishment-it has been reported that the \"Restoration of Britain\" party founded by Rupert Lowe had £ 2.5 million in its accounts when it was established, but did not specify the source of the funds. Another amendment, proposed by Mark Seowers, would require verification of whether donations risk being used by foreign powers to undermine British democracy.

Background: Regulatory loopholes and Reform Party controversy

The UK suspended political donations in cryptocurrencies in March this year after the government-commissioned Reycroft Report warned that the anonymity of digital asset transactions could be used to introduce foreign funds into British politics. Report author Philip Rycroft, a former senior civil servant, called for a temporary \"lull\" rather than a permanent ban so that regulatory measures could keep pace. The amendment by members will completely close this channel.

Activists have been calling for a complete ban on such donations for months, arguing that election commissions lack the tools to track cryptocurrencies, and noting that Ireland and Brazil have implemented outright bans. The Reform Party of the UK became the first major party to accept cryptocurrency donations in June 2025.

The push for the strengthening bill comes amid growing financial pressure behind the Reform Party. The party has received millions of pounds in donations from overseas cryptocurrency billionaires Christopher Harborne and Ben Dellow-but none of these donations are in the form of cryptocurrency.

Farage faces investigation

In addition, Farage is facing investigation by the Parliamentary Standards Commissioner for accepting a £ 5 million gift from Harborne. The gift was accepted shortly before he announced his candidacy for Parliament in June 2024. Farage reportedly claimed that he was not obligated to declare the money and had the right to dispose of it as he wished. However, the bank has doubts about the final destination of its funds and has submitted suspicious activity reports. Farage denied any wrongdoing and triggered a by-election in his Clarkton constituency to prove voters supported him-none of the Reform Party\'s main opponents ran.

Ministers also separately committed to strengthening the electoral bill when it returns to the House of Commons on July 14. The government amendment includes a £ 100,000 cap on donations made by overseas nationals in the first year of returning to the UK. Not all proposals received equal support: Labour MP Stella Crissey\'s proposal to cap personal donations at £ 100,000 is known to have less support than the amendments of Bourne, Dodds, Yang Yuan and Seoze. A spokesman for the Ministry of Housing said the government would \"continue to look for ways to strengthen the bill\" during the bill review process.