UK Labour Lawmakers Call For Crypto Donation Ban To Protect Democracy

TLDR

Table of Contents

Seven senior Labour MPs urge a UK-wide ban on political crypto donations.
Lawmakers warn crypto hides donors and enables unchecked micro-donations.
Reform UK supports crypto donations but claims to reject anonymous ones.
Electoral Commission admits current tech can’t track crypto donation risks.

Seven senior Labour Party members in the UK have urged Prime Minister Keir Starmer to ban political donations made using cryptocurrency. The request comes as the government prepares to introduce an elections bill later this month. The lawmakers believe such a ban is necessary to maintain transparency and protect UK democracy from foreign influence.

Lawmakers Warn of Crypto’s Risk to Transparency

The group of lawmakers includes committee chairs from key areas such as business, home affairs, and standards. In a joint letter, they expressed concern that crypto assets could obscure the origins of political donations.

Business and trade committee chair Liam Byrne said that “crypto can obscure the true source of funds, enable thousands of micro donations below disclosure thresholds, and expose UK politics to foreign interference.”

1/. Seven Select Committee Chairs have written to the PM urging a ban on cryptocurrency donations to political parties in the #ElectionsBill.
Crypto is opaque, hard to trace, vulnerable to foreign interference & a growing risk to democratic integrity.
We should make clear NOW… pic.twitter.com/9XOXllixtu
— Liam Byrne MP (@liambyrnemp) January 12, 2026

The Electoral Commission has also expressed difficulty in managing the risks associated with cryptocurrency donations, stating that the current technological tools are not effective enough to monitor them.

Timing Around Elections Bill and May Local Elections

The push for the ban comes ahead of the upcoming local elections in May. A new elections bill is expected to be introduced soon, which will include changes such as lowering the voting age to 16. However, officials say including a full crypto donation ban in this bill may be difficult due to the technical complexity of enforcing such a law on short notice.

Despite this, the lawmakers have stressed the urgency of action. “Other democracies have already acted,” Byrne said. “The UK should not wait until a scandal forces our hand.” The MPs maintain that their proposal is about safeguarding democratic processes, not opposing digital innovation.

Reform UK’s Position and Recent Crypto-Linked Donations

Reform UK is currently the only political party in the country to publicly endorse cryptocurrency donations. The party stated in May that it would be the first to accept such contributions and also proposed holding part of the UK’s national reserves in Bitcoin. Their website, however, claims they do not accept anonymous crypto donations.

Reform UK received a £9 million cash donation in December from Christopher Harborne, a known early crypto investor. This was the largest political donation ever recorded from a living individual in the UK and was disclosed under current electoral laws.

While Reform UK maintains it complies with transparency laws, Labour MPs argue that crypto still presents loopholes for undeclared or foreign funds to enter UK politics.

Anti-Corruption Groups Back the Proposed Ban

The UK Anti-Corruption Coalition has also expressed support for banning crypto donations. The group stated last month that allowing such donations is inconsistent with the UK government’s own warnings about the use of digital assets in illicit financing and foreign interference.

Senior Labour MP Pat McFadden, who previously suggested a crypto ban in July, emphasized the importance of donor clarity. “It’s very important that we know who is providing the donation, are they properly registered, what are the bona fides of that donation,” he said.

With growing concerns over transparency and enforcement, the issue of crypto donations remains a focal point as the UK prepares for legislative updates and a busy election year.