The UK Liberal Democrats have asked the Financial Conduct Authority (FCA) to investigate Nigel Farage’s links to Bitcoin treasury company Stack BTC after the firm disclosed a 37 BTC purchase and published promotional material featuring the Reform UK leader, who is also a shareholder.
Deputy leader Daisy Cooper wrote to the FCA requesting that regulators examine whether Farage breached market rules by appearing in a Stack BTC promotional video while holding an equity stake. Cooper said the regulator should determine whether Farage’s public endorsement could amount to market abuse or a conflict of interest, and argued that political figures should not treat financial markets as a ‘‘personal piggy bank.’’
Stack BTC said it bought 37 BTC for about $2.7 million as part of its treasury strategy, and the purchase was accompanied by a video in which Farage said a Bitcoin treasury company must actually hold Bitcoin. An FCA spokesperson told Cointelegraph the regulator will review Cooper’s letter and respond directly. Cointelegraph contacted Stack BTC for comment but had not received a response by publication.
Farage has recently strengthened his ties to the company. In March he disclosed an equity investment of $286,000 through his media vehicle Thorn In The Side, a holding that gave him a 6.31% stake. Stack BTC, chaired by former chancellor Kwasi Kwarteng, reports holding more than 68 BTC purchased at an average cost of about $72,400 per coin.
Cooper also highlighted a £9 million donation to Reform UK from early crypto investor Christopher Harborne and noted Farage’s advocacy for crypto-friendly policies. She asked whether Farage may be leveraging his political platform to promote cryptocurrencies in ways that could boost prices to the advantage of himself, his party, and close donors.
The request to the FCA arrives amid wider scrutiny of crypto influence in UK politics. The Rycroft Review recently recommended a moratorium on cryptocurrency donations to political parties because of risks including foreign interference. The UK government is moving to introduce a temporary ban on crypto donations until stronger safeguards are in place, and some MPs, including the chair of the security committee, have urged a full ban.
This report is based on material published by Cointelegraph. Cointelegraph states it is committed to independent, transparent journalism and encourages readers to verify information independently in line with its editorial policy.