The UK government is pressing ahead with a temporary moratorium on political donations made in cryptocurrency following the independent Rycroft Review and pressure from senior politicians. The Rycroft Review, which examined foreign financial interference in UK politics and elections, recommended pausing crypto donations to parties while stronger safeguards are developed.
Prime Minister Keir Starmer announced the intention to impose the moratorium during Prime Minister’s Questions, saying the government will act to protect democracy and that the pause will cover all political donations made through cryptocurrencies. Several MPs, including the chair of the Commons security committee, have called for a comprehensive ban this year, warning that foreign actors could exploit crypto to influence UK politics.
Legally, the change requires amendments to the Representation of the People Bill. The government plans for those amendments 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 before becoming law.
When the legislation takes effect, political parties and regulated entities—such as candidates and MPs—will have 30 days to return any donations that are deemed unlawful under the new rules. Failure to comply could result in enforcement action.
Reform UK was the first major UK party to accept crypto donations, announcing in May last year at Bitcoin 2025 that it would accept Bitcoin and other cryptocurrencies from eligible donors. The moratorium will remain in place until Parliament and the Electoral Commission are satisfied that the regulatory framework ensures transparency and prevents untraceable funds or foreign interference.
These developments are reported on the basis of government statements and coverage by Cointelegraph. Readers are encouraged to consult the original reports and official sources for confirmation and further detail.