UK MPs Push for Ban on Crypto Donations to Political Parties Amid Transparency Concerns

Seven parliamentary committee chairs, including Liam Byrne and Emily Thornberry, are urging the UK government to impose a full ban on cryptocurrency donations to political parties. Their joint letter highlights growing unease about the potential for digital assets to undermine electoral transparency, particularly through untraceable foreign contributions.

The MOVE follows warnings from campaign groups like Spotlight on Corruption, which argue current regulations fail to prevent bad actors from exploiting crypto's pseudonymous nature. The MPs contend that without intervention, anonymous crypto donations could become a conduit for foreign interference in British elections.

This marks a significant escalation in the crypto-political funding debate, with lawmakers now seeking preemptive restrictions rather than post-transaction oversight. The initiative reflects broader global scrutiny of cryptocurrency's role in campaign finance, mirroring recent regulatory actions in the US and EU.