TLDR
- A cross-party UK committee urged an immediate moratorium on crypto political donations.
- Lawmakers want changes to the Representation of the People Bill to enforce the pause.
- The report warned AI could split transfers into £499 donations to avoid disclosure.
- UK political donations reached nearly £65 million in 2025, Electoral Commission data showed.
UK lawmakers have urged an “immediate ban” on crypto political donations, and they want Parliament to move quickly. A cross-party committee said digital asset gifts pose too much risk for the current election finance system.
The recommendation came in a report released on March 18, 2026. Lawmakers asked for a binding moratorium through amendments to the Representation of the People Bill. They said the pause should last until enforceable safeguards are in place.
Committee backs a binding moratorium
The committee chose a moratorium over a permanent ban because it would act faster. Members said it could reduce risk while broader rules are prepared.
Lawmakers said the pause should remain until Parliament approves statutory guidance for the Electoral Commission. They said flexible rules are needed because donation methods can change quickly.
The commission has advised “especially cautious” handling of donations involving mixers or AI-based splitting. Yet that advice is not binding under current law.
The report said crypto transfers can bypass normal financial checks and make donor tracing harder. It warned that current oversight is too weak, and monitoring costs are too high. The committee said there is no democratic need to allow crypto in political finance before safeguards exist.
Tracing gaps and small donation risks
Lawmakers listed mixers, tumblers, privacy coins, and chain-hopping as tools that can hide fund flows. They also said crypto can be converted into cash before source checks are complete.
The committee said donor source checks remain weak when crypto is turned into fiat money. It warned that this gap can limit clear verification of wealth.
Micro-donations drew special concern because they can slip below disclosure rules. The report said AI tools could split larger transfers into repeated £499 donations. That would keep each payment below the £500 reporting threshold.
Electoral Commission data showed nearly £65 million in UK political donations during 2025. The total included a £3 million gift to Reform UK from Christopher Harborne.
Industry groups push for regulation
Some industry figures said tighter rules would work better than a ban. Ian Taylor of CryptoUK called a ban “undemocratic” in comments cited by the report.
Natasha Powell of Kraken said blockchain tracing tools can identify wallets that spread funds across many recipients. She said those tools are “achievable and deployable” and “not NASA.”
The UK Anti-Corruption Coalition backed a full ban and pointed to rules in Ireland, Brazil, and some U.S. states. It said wallet addresses often lack verified real-world identities.
Tom Keatinge of RUSI said donors could convert crypto into sterling and then give through banks. Still, the committee urged tougher donor checks, lower disclosure limits, and prison terms for serious breaches.
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