UK Labour MPs push for permanent ban on crypto donations

Labour MPs led by Liam Byrne are seeking to add a permanent ban on political donations in crypto assets to the Representation of the People Bill. The proposed clause would prevent parties and candidates from accepting cryptocurrency contributions.

Backers are collecting signatures for amendments that would insert the new clause into the bill, which governs voting and political finance rules. Supporters say the change would reduce routes for anonymous or impermissible funding. Byrne urged parliamentarians who ‘genuinely care about the integrity of UK democracy' to back the amendments.

By midday on Thursday the amendments had attracted at least 20 signatures. The bill is scheduled for its report stage in the House of Commons next Tuesday, when backers plan to press the clauses into the bill and onto the parliamentary timetable.

The effort follows scrutiny of Reform UK leader Nigel Farage, who resigned as MP for Clacton earlier this week and is under parliamentary investigation over donations linked to cryptocurrency.

Reports indicate Farage received a £5 million gift from a Thailand-based British cryptocurrency investor in early 2024. Bankers who handled the transaction raised concerns about the source of the funds and filed a Suspicious Activity Report with the National Crime Agency. Questions have also been raised about Farage's connections to George Cottrell, a convicted fraudster linked to an offshore crypto gambling platform.

Farage has denied any wrongdoing, stating ‘Let me be absolutely clear: I have done nothing wrong. I have not broken the law in any way at all. I have not misused public money.'

If adopted, the amendments would create a permanent legal ban on crypto donations to political actors. Supporters say the change would limit avenues for obscured funding flows. Opponents have raised questions about enforcement, how crypto assets would be defined and the effect on private gifts. The report-stage debate in the Commons will determine whether the clauses advance.