The UK government is moving forward with plans for a temporary moratorium on political donations made in cryptocurrency after an independent inquiry and pressure from senior politicians.
The Rycroft Review — an independent inquiry into foreign financial interference in UK politics and elections — recommended a moratorium on crypto donations to political parties. Prime Minister Keir Starmer confirmed the government will pursue that temporary ban during Prime Minister’s Questions, saying, “I can tell the House we will act decisively to protect our democracy. That will include a moratorium on all political donations made through cryptocurrencies.”
Several MPs, including the chair of the Commons security committee, have urged a comprehensive ban this year, warning that foreign states could exploit crypto to influence UK politics. The government said crypto donations will be prohibited until robust regulations are introduced to prevent untraceable funds and foreign interference.
Legally, the ban requires amending the Representation of the People Bill; the government intends those changes to have retrospective effect from March 25. The Bill is currently at committee stage in the House of Commons. It must pass both the Commons and the House of Lords and receive royal assent to become law.
Once the legislation is in force, political parties and regulated entities such as candidates and MPs will have 30 days to return any unlawful donations they received in the interim, after which enforcement action may follow.
Reform UK was the first major UK party to accept crypto donations, starting in May last year when leader Nigel Farage announced at Bitcoin 2025 that the party would accept Bitcoin and other cryptocurrencies from eligible donors.
The ban will remain until Parliament and the Electoral Commission are satisfied the regulatory environment ensures confidence and transparency in crypto donations. The next UK general election must be held by Aug. 15, 2029.
Cointelegraph reports and the government’s statement provide the basis for these developments. Cointelegraph notes its commitment to independent, transparent journalism and encourages readers to verify information independently.