The chairs of seven parliamentary committees submitted a letter on Sunday, January 11, requesting that the UK government consider banning crypto donations to political parties completely in the country.
Following this request, a local news outlet noted that this move deepens discussions that have been ongoing for several months regarding cryptocurrencies in British elections.
UK committee chairs call for a move against crypto donations to political parties in the country
Regarding the UK committee chairs’ recent move, a report noted that the submitted letter mentioned that crypto donations negatively impact political funding as they pose a threat to transparency, traceability, and enforcement in political funding. Notably, Liam Byrne, who leads the Business, Energy and Industrial Strategy Committee, along with six other members, signed their names to this letter before submitting it.
Due to the intense nature of the situation, reporters contacted Byrne for clarification on this matter. In a statement, he stated that, “Cryptocurrency can hide the real source of funds, allow many small donations that fall below disclosure limits, and open UK politics to foreign influence. The Electoral Commission has warned that current technology makes it especially hard to manage these risks.”
Interestingly, sources have stressed that this is not the first time the Labour government has considered imposing a ban on crypto donations. Earlier in July 2025, Patrick McFadden, a Secretary of State for Work and Pensions, publicly noted that the government was carefully evaluating this decision. With this recent move, analysts argued that the appeal exerts heightened pressure on the Labour government.
UK ministers also weighed in on the topic of discussion. They expressed their belief that crypto donations pose a threat to electoral integrity since it is difficult to trace their origins. Nonetheless, even with this assertion, these ministers acknowledged that the complex procedures and regulations put in place when imposing a ban imply that this restriction will not be included in the Elections Bill, which is anticipated to be made public soon.
Meanwhile, while UK committee chairs urge the government to consider banning cryptocurrency donations to political parties, reports revealed that Nigel Farage, a Member of Parliament for Clacton and Leader of Reform UK, declared in May last year that his party would be at the forefront to receive donations in BTC and other digital assets.
The fate of cryptocurrencies in the UK sparks endless debates among individuals
Debates regarding crypto donations intensified in December 2025 when the Electoral Commission issued a filing claiming that Reform UK had accepted a crypto donation worth £9 million, or approximately $12 million, from Christopher Harborne, a Thailand-based cryptocurrency investor who holds about 12% ownership of Tether.
Following this announcement, several analysts argued that most of the investor’s wealth originated from his significant investments in the cryptocurrency industry, despite donating traditional currency rather than cryptocurrency.
Responding to this allegation, Labour and the Liberal Democrats decided to conduct a thorough investigation into the matter.
In the meantime, it is worth noting that the UK committee chairs’ request to the government to impose a ban on cryptocurrency donations comes at a time when the nation is developing its overall crypto regulatory framework.
To support this claim, reports dated December pointed out that the UK Parliament passed a regulation that perceives cryptocurrencies as property. The reports also mentioned that the parliament is looking forward to regulating these digital assets, similar to traditional financial products, by 2027.
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