CATENAA, January 9, 2025 — Pressure is mounting on the UK government to tighten oversight of the crypto sector as senior lawmakers push for a ban on political donations made in digital assets while regulators outline a clear path toward mandatory licensing.
Chairs of seven parliamentary committees have urged the government to prohibit cryptocurrency donations to political parties, warning they weaken transparency, complicate enforcement and increase the risk of foreign interference in elections.
The call adds strain on the Labour government, which has been weighing restrictions on crypto donations for months but is unlikely to include a ban in the upcoming Elections Bill.
The debate has intensified after Reform UK became the first British party to accept bitcoin and other crypto donations, and following the disclosure of a record £9 million contribution from a crypto-linked investor. While that donation was made in fiat currency, lawmakers said the case highlights weaknesses in existing political finance rules.
At the same time, the Financial Conduct Authority has signaled that crypto firms will be able to begin applying for formal authorization in September 2026, ahead of a new regulatory regime set to take effect in October 2027. Companies operating in or marketing to the UK will be required to secure approval under the Financial Services and Markets Act.
The FCA warned that existing registrations under anti money laundering, payments or e money frameworks will not automatically carry over.
Firms must reapply, with transitional arrangements limiting activity for those that miss the window or fail to gain approval.
Ripple, whose payments-focused blockchain business has expanded across Europe, is expected to seek authorization under the new UK regime.
The company has previously said regulatory clarity is central to its strategy as it grows institutional adoption of crypto-based payment rails.
Ripple’s XRP token and enterprise products could benefit from clearer UK rules, though higher compliance costs may reshape how the firm and peers structure operations in the country.
