UK cryptocurrency donation ban: Labour MPs push for permanent ban

British Labour MPs push for permanent ban on political parties and candidates receiving cryptocurrency donations

A group of British Labour MPs are pushing for a permanent ban on political parties and candidates receiving cryptocurrency donations, a move that goes beyond the government\'s existing temporary ban. They have proposed a reporting period amendment to treat all donations related to crypto-assets as prohibited under electoral laws.

Labour MPs want to amend UK donation rules

Labour MP Liam Bourne submitted an amendment numbered NC34 during the reporting stage of the People\'s Congress Bill, titled \"Prohibition of political parties and candidates from accepting donations of crypto assets.\" The amendment effectively makes it illegal by classifying crypto donations as coming from \"prohibited donors\". The scope of application of NC34 is broader than a simple token ban. It covers donations made in whole or in part in the form of crypto assets, donations derived from the proceeds of crypto assets such as digital tokens and memin, and donations accepted through a custodian wallet provider or crypto asset exchange.

The clause aims to block avenues of circumvention. For example, donors cannot first convert memin into British pounds and then donate cash, nor can they transfer donations through a cryptocurrency exchange to conceal their origin. The amendment clearly targets these intermediate paths and goes beyond the UK\'s previous proposal to ban crypto donations. It was reported on July 9, 2026 that Labour MPs supported Bourne\'s proposal for a permanent ban as part of a series of stricter campaign finance amendments during the reporting period. According to unconfirmed reports in the encrypted media, the proposal may have co-signed support from at least 20 lawmakers, but the number has not yet been independently verified by official sources.

Once adopted, the Election Commission will be required to issue guidelines within three months of the relevant provisions taking effect, providing a clear compliance framework for political parties and candidates.

How the current temporary ban on crypto donations works in the UK

The British government announced on March 25, 2026 an immediate and comprehensive ban on cryptocurrency donations in the political sector, which will continue until Parliament and the Election Committee are satisfied with the soundness of the regulatory environment.

Ban start date: March 25, 2026. The proposed ban on crypto donations was declared effective immediately and will be implemented from that date.

This restriction has retroactive effect. The government stated that political parties or candidates who accept crypto donations after March 25, 2026 will have to refund those donations within 30 days after the law takes effect.

Refund period: 30 days. The temporary compliance rule gives recipients 30 days to refund donations that will become illegal after the legislation takes effect.

Many related reports ignore key legal differences. The Election Commission has stated that the government aims to make the ban retroactive from March 25, 2026, but the law itself has not yet been changed. The ban is currently a policy intent rather than an enacted regulation. The House of Commons Library said that with parliamentary approval, with effect from March 25, 2026, crypto assets will no longer be considered an acceptable form of donation in British politics. This conditional expression of \"approved by Parliament\" is the importance of the Bourne amendment.

Importance of permanent bans to political parties, candidates and crypto policies

The difference between temporary bans and permanent statutory bans is not theoretical. The temporary ban can be lifted if the government determines that conditions have changed. The permanent ban written into the People\'s Congress Act requires new legislation to overturn it. Bourne\'s amendment aims to transform the framework established in the government\'s response to the Lycroft Review Report into a lasting legal ban. The proposal clearly includes income from crypto assets and intermediary services into regulations, aiming to prevent possible circumvention left by simpler bans.

For political parties and candidates, the practical next steps are concrete. If the NC34 amendment is passed, the Election Committee must issue compliance guidance within three months. Prior to this, even if the permanent ban had not yet taken effect, the existing temporary ban framework had shown that there were legal risks in accepting crypto donations. The amendment\'s progress during the reporting period will determine whether the UK\'s current policy-level restrictions will become one of the most comprehensive statutory bans on crypto political donations in major democracies.