British Labor MPs push for permanent ban on cryptocurrency donations after Farage resigned

British Labour MPs propose a permanent ban on political donations in cryptocurrencies

British Labour MPs have proposed turning a temporary ban on political parties accepting cryptocurrency donations into a permanent ban. Previously, Nigel Farage resigned in connection with an investigation into multimillion-pound donations linked to people in the cryptocurrency industry.

Summary

Following the resignation of Nigel Farage, British Labour MPs have proposed turning a temporary ban on political parties accepting cryptocurrency donations into a permanent ban. Parliament is investigating the multimillion-pound donations Farage received from people associated with cryptocurrencies such as Christopher Harborne and George Cottrell. MPs are expected to discuss the amendment next week, while Labour begins electing a new leader, which could affect future cryptocurrency policy in the UK.

It is reported that ruling Labour MPs have proposed amendments to existing political donations rules, aiming to permanently ban donations of digital assets. Previously, the UK introduced a temporary ban in March this year. Liam Byrne, a Labour MP and chairman of the Business Select Committee, said the proposed changes were aimed at strengthening safeguards against the political influence of wealthy donors. He mentioned that a political and media network backed by huge sums of money was growing and believed the UK could no longer allow existing safeguards to be further weakened.

British MPs are expected to consider the amendments next week, while the review surrounding Farage\'s financial declarations continues.

Resignations bring cryptocurrency donations back into focus

Farage resigned as a member of the Clackton constituency earlier this week. He previously confirmed that the Parliamentary Standards Commissioner was investigating gifts he received from cryptocurrency billionaire Christopher Harborne and long-time consultant George Cottrell. In a live broadcast on Tuesday, Farage said he had \"done nothing wrong\" and announced that he would participate in the resulting by-election to let Clarkton voters decide whether he should continue to represent them. According to him, Harborne\'s multimillion-pound payment was an unconditional personal gift to cover security costs after he was threatened.

Donations reportedly being reviewed include a gift worth approximately $6.7 million from Harborne and staff, security, transportation and accommodation support from Cottrell. Cottrell was previously convicted of wire fraud in the United States and was associated with the cryptocurrency casino Tether.bet. Earlier reports stated that Farage did not publicly declare much of the support provided by Cottrell. Farage rejected the allegations, saying the benefits were obtained before he entered Parliament after the 2024 election and therefore did not fall within the scope of Parliament\'s disclosure rules.

His resignation automatically triggered a by-election in the Clarkton constituency. According to media reports, the Labour Party, Conservative Party, Liberal Democrats and Green Party are not expected to send candidates. Prime Minister Kiel Stammer described Farage\'s decision as a \"desperate gimmick.\"

Leadership battle may affect encryption policy

While the debate over political donations comes as Labor has begun selecting a successor after Stammer\'s resignation. Andy Burnham reportedly returned to Parliament after winning the Mayfield by-election and is expected to become the next leader of the Labor Party if he receives enough party nominations. As mayor of Greater Manchester, Burnham previously supported plans to turn the area into a \"Web3 town\" and supported the use of digital technology to drive economic development. If elected as party leader, Burnham could influence future issues such as the proposed ban on cryptocurrency donations and the UK\'s Financial Conduct Authority\'s regulation of the digital asset sector.