A group of UK lawmakers led by Liam Byrne has proposed a permanent ban on cryptocurrency donations to political parties and candidates through New Clause 34 to the Representation of the People Bill, tabled ahead of the bill's report stage in the House of Commons. The amendment seeks to replace the government's temporary moratorium on crypto political donations with a permanent prohibition, treating donations made in cryptoassets as impermissible under UK election law. Supporters argue that the pseudonymous nature of crypto transactions creates challenges for verifying donors and preventing foreign influence, with the proposal emerging following controversies surrounding Nigel Farage and Reform UK's funding. The UK government introduced the temporary moratorium earlier this year while considering a long-term regulatory framework for political finance.
UK Lawmakers Table New Clause 34 to Representation of the People Bill
The amendment is led by Liam Byrne and sponsored by Dr Ellie Chowns, Siân Berry, Carla Denyer, and Adrian Ramsay, among others, according to the official parliamentary record. In the explanatory statement, the lawmakers stated: "The purpose of this new clause is to prevent parties, regulated donees (including third-party campaigners) and candidates from accepting donations in cryptoassets or from the proceeds of cryptoassets, to reduce the risks of anonymous and impermissible donations."
The proposal forms part of a broader package of amendments aimed at tightening political funding rules, including enhanced "know your donor" requirements, stricter scrutiny of donations linked to overseas interests and lower campaign spending limits. If adopted, the amendment would replace the government's temporary moratorium introduced earlier this year with a permanent prohibition.
Farage and Reform UK Controversies Drive Transparency Concerns
The renewed push follows months of scrutiny over funding linked to Nigel Farage and Reform UK. Questions were raised over financial support connected to crypto investor Christopher Harborne, one of Reform UK's largest financial backers, alongside broader concerns about transparency in political donations. While the proposed amendment does not mention Farage or Reform UK by name, lawmakers supporting the measure have argued that recent controversies demonstrate why public political confidence requires stronger safeguards.
The debate intensified after questions were raised over financial support connected to Harborne, with supporters of the amendment contending that a permanent prohibition would provide greater certainty than a temporary suspension.
Amendment Represents UK's Toughest Crypto Political Finance Restriction
If adopted, the amendment would represent one of the UK's toughest restrictions on the use of digital assets in politics. Unlike disclosure-based regimes that permit crypto donations subject to reporting requirements, the proposal would prohibit political parties and candidates from accepting cryptocurrency contributions altogether.
The move reflects growing concern among global policymakers about the potential use of digital assets to obscure the source of political funding or for foreign interference in democratic processes. Industry observers note that the proposal comes at a time when governments are simultaneously developing more comprehensive regulatory frameworks for cryptoassets. As of the time of writing, the House has not considered the amendment.
FAQ
What did UK lawmakers propose regarding cryptocurrency donations?
UK lawmakers led by Liam Byrne proposed New Clause 34 to the Representation of the People Bill, which would permanently ban cryptocurrency donations to political parties and candidates. The amendment was tabled ahead of the bill's report stage in the House of Commons.
Why are UK lawmakers seeking to ban crypto donations permanently?
Lawmakers argue that the pseudonymous nature of crypto transactions creates challenges for verifying donors, tracing the origin of funds, and preventing foreign influence in UK elections. The proposal follows controversies surrounding Nigel Farage and Reform UK's funding, including financial support connected to crypto investor Christopher Harborne.
Has the UK House of Commons considered the crypto donation ban amendment?
As of the time of writing, the House has not considered the amendment. The UK government introduced a temporary moratorium on cryptocurrency donations earlier this year while it considered a long-term regulatory framework for political finance.
