Key facts
- Labour MPs are proposing amendments to make the UK's ban on crypto political donations permanent.
- The amendments are part of a push to toughen the government's political funding bill.
- The move follows large donations to Nigel Farage's Reform UK from crypto billionaires.
- Liam Byrne is championing the amendment to permanently ban crypto donations.
- Other proposed changes include reducing campaign spending limits and restricting initial party funding.
Labour Members of Parliament are preparing to introduce amendments to the UK's Representation of the People Bill, aiming to permanently ban political donations made in cryptocurrency. This initiative, reported by The Guardian, seeks to strengthen the government's political funding legislation and increase scrutiny over campaign finances.
The push is significantly influenced by recent large donations made to Nigel Farage's Reform UK party by crypto billionaires Christopher Harborne and Ben Delo. While these specific donations were not in cryptocurrency form, they have intensified concerns about the potential for digital assets to be used for opaque political funding.
Liam Byrne, the Labour chair of the business select committee, is spearheading the amendment for a permanent crypto ban, arguing it is a necessary safeguard for British democracy. His proposal has garnered considerable support among Labour MPs. The proposed changes also include reducing campaign spending limits from £34 million to £24.4 million, as tabled by former cabinet minister Anneliese Dodds, and introducing limits on the initial funds a party can hold, an amendment proposed by Yuan Yang.
Additionally, Mark Sewards is proposing measures to check for foreign attempts to undermine British democracy through donations. The UK government had previously imposed a temporary moratorium on crypto political donations in March, following a review by Philip Rycroft that highlighted the anonymity risks associated with digital-asset transfers. However, the rebel amendment aims to solidify this into permanent law, diverging from Rycroft's suggestion of a temporary interlude to allow for regulatory development.
Campaigners have advocated for a complete ban for months, citing the Electoral Commission's limited capacity to trace crypto transactions and pointing to existing bans in countries like Ireland and Brazil. Reform UK had previously become the first major British party to accept crypto donations in June 2025.
The intensified focus on political funding comes amid scrutiny of Reform UK's finances and Nigel Farage's acceptance of a £5 million gift from Harborne, which is under investigation by the Parliamentary Standards Commissioner. Farage denies any wrongdoing and has triggered a byelection in his Clacton seat. The government has also indicated it will propose its own amendments to the elections bill, including a £100,000 cap on donations from expats for their first year back in the UK.