Catenaa, Saturday, March 21, 2026- A UK parliamentary committee called for an immediate ban on cryptocurrency donations to political parties, warning the funds pose risks to election integrity and public trust ahead of pending legislation.
The cross-party Joint Committee on the National Security Strategy urged lawmakers to amend the Representation of the People Bill to block crypto contributions until stronger safeguards are in place. Chair Matt Western said concerns over foreign-linked funding are rising and could weaken confidence in the electoral system.
The proposal comes as digital assets gain traction in political fundraising, raising questions about transparency and enforcement under existing rules.
Reform UK became the first major British party to accept cryptocurrency donations in 2025, prompting scrutiny from rivals and regulators. Reports of large contributions linked to digital asset investors intensified calls for oversight.
Lawmakers said crypto transactions can obscure donor identities, making it harder to confirm whether funds originate from eligible UK-based sources.
The committee recommended creating a dedicated enforcement unit within the National Crime Agency to oversee political donations and monitor emerging risks tied to digital finance.
It also proposed stricter rules on overseas contributions and faster conversion of crypto donations into traditional currency to limit exposure to volatility and misuse.
Experts told the panel that privacy-focused tools and transaction-splitting techniques can make tracking crypto donations difficult. These methods could allow large contributions to be broken into smaller amounts that fall below reporting thresholds.
Some industry representatives argued that regulated systems can improve transparency, while others warned that banning crypto could push activity outside regulated channels.
Critics of the proposed safeguards said centralized identity checks could create attractive targets for cyberattacks. Past breaches involving political organizations have exposed sensitive donor data, raising concerns about similar risks.
Countries differ widely in how they regulate crypto in politics. Some jurisdictions restrict foreign-linked contributions, while others have yet to address digital assets in campaign finance laws.
The committee said urgent action is needed before the next general election, though no date has been set. Lawmakers are expected to debate the recommendations as the bill advances through Parliament.
The outcome could shape how democracies balance financial innovation with election security.
