- UK Labour MPs push to block crypto donations to protect election transparency and limit risks tied to foreign funding flows.
- A large crypto donation to Reform UK has increased pressure on lawmakers to close gaps in political finance rules.
- Lawmakers warn crypto and AI tools may hide funding sources and weaken oversight before future UK elections.
A group of senior Labour MPs has intensified pressure on the UK government to block cryptocurrency donations to political parties ahead of upcoming electoral reforms. The move reflects growing concern within Parliament over political finance transparency. Lawmakers now want the Elections Bill to include a clear legal ban on crypto contributions.
The proposal comes as scrutiny increases over how digital assets may affect democratic safeguards. Committee members argue that existing donation rules fail to address risks linked to emerging financial technologies. As a result, they want tighter controls written directly into election law.
Labour Committee Pushes for Clear Legal Ban
The call comes from a seven-member committee of Labour backbenchers with senior parliamentary roles. The group includes Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah, and Matt Western. They jointly urged Prime Minister Keir Starmer to act through the Elections Bill.
The MPs raised these concerns after hearing evidence during recent committee sessions. They highlighted the risk that crypto donations could bypass current oversight systems. Additionally, they warned that digital assets may fall outside existing UK regulatory frameworks. These gaps, they argue, weaken enforcement and public trust.
The committee also flagged how artificial intelligence tools could further blur donation trails. Combined with crypto transfers, such tools may make it harder to identify original fund sources. Consequently, MPs see a direct threat to election integrity.
Reform UK Donation Brings Issue Back Into Focus
Pressure on the government increased after Reform UK accepted a large cryptocurrency donation. The contribution totaled about £9 million, equivalent to roughly $12 million. According to Electoral Commission data, crypto investor Christopher Harborne made the donation ahead of local elections in May.
The scale of the donation revived debate within Westminster. Critics said it exposed weaknesses in current political finance rules. Moreover, the case added urgency to calls for reform before future national elections. Government officials had already signaled that changes were under consideration.
Last month, ministers said the Elections Bill would clarify the government’s position on crypto donations. However, no firm commitment appeared in earlier briefings. Labour MPs now want explicit legal wording to remove ambiguity.
Foreign Interference and Transparency Concerns Grow
Concerns also extend beyond domestic politics. Former senior civil servant Philip Rycroft is reviewing foreign financial interference in UK democracy. His review includes the role of cryptocurrency in political funding. However, officials do not expect findings until March 2026.
Labour MPs argue that waiting for that review risks further exposure. They stress that political finance systems must remain transparent and traceable. In their view, crypto enables fragmented micro-donations that can avoid disclosure thresholds. That structure may allow overseas influence to enter UK politics unnoticed.
Parliamentarians involved insist their stance does not oppose financial innovation. Instead, they frame the push as a safeguard for democratic accountability. With the Elections Bill approaching, the debate over crypto donations is likely to remain central to election reform discussions.
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