British MPs are debating a proposal to ban cryptocurrency donations in politics.
- Labour MPs want to stop crypto donations, citing foreign influence risks.
- Reform Party supports crypto, calling it modern and accessible.
- Experts argue existing rules already limit election finance abuse.
Labour MPs Raise Security Concerns
Some UK lawmakers want to block crypto donations to political campaigns. Cabinet Office Minister Pat McFadden from the Labour Party said crypto may allow foreign powers to interfere with UK elections. He suggested banning crypto donations entirely. MP Liam Byrne agreed, calling for a full cleanup of hidden money in politics. Byrne warned that anonymous crypto donations could be hard to track and control.
Reform Party Welcomes Crypto Donations
Nigel Farage, head of the right-wing Reform Party, disagrees. He said allowing crypto donations helps modernize the UK. His party began accepting them in June. Farage believes crypto is part of the future and should be embraced by British politics. Reform is gaining support as voters question Labour’s leadership.
Experts Say Fears May Be Overstated
Tom Spiller, a legal expert on cryptocurrencies, said the fear around crypto donations is overblown. He noted that current election laws already require parties to report the identity of donors giving over 500 British pounds. Spiller argues crypto is no riskier than traditional money and added that banks have a worse track record of enabling illegal finance.
Calls for Stronger Transparency Rules
Despite the rules, loopholes still exist. Anti-corruption experts point out that someone could anonymously give crypto to a UK resident, who then donates to a political party. The origin may go undetected. Groups like Transparency International UK say one in 10 political donations come from unclear sources. The Labour government plans to close these gaps with stricter reporting laws and a strategy document coming soon.
Crypto Influence Across Democracies
The debate reaches beyond the UK. In the US, political donations through crypto are also under scrutiny. Lawmakers recently investigated how memecoin investments might allow foreign entities to access the president. The Fairshake PAC, a powerful US crypto group, has raised $141 million for the 2025 elections. Governments everywhere are now looking at how crypto could shape democracy—for better or worse.
Source: cointelegraph.com
