UK Considers Banning Crypto as a Form of Political Donations

The UK government is considering new rules that could block political parties from accepting donations made in crypto, a move that would directly affect Reform UK only months after it became the first party to take payments in crypto.

Several people familiar with ongoing talks say the proposal is under review for possible inclusion in the upcoming Elections Bill. Officials have not confirmed the plan, but they have said that the government will outline any changes once the legislation is released.

The move comes as Reform UK tries to position itself as the country’s most enthusiastic supporter of crypto. Earlier this year, party leader Nigel Farage introduced a platform that allowed supporters to send funds in various cryptocurrencies.

He framed the move as part of what he called a broader push to energize Britain’s crypto sector and has regularly told industry groups that his party is the only political home for crypto.

In October, Farage stated that the party had already received a small number of crypto contributions after informing the Electoral Commission. It marked the first time such donations had been officially recorded in British political life, although the value of the transfers has not been disclosed.

The political debate around digital asset funding has intensified as Reform UK climbs in national polling and as the government faces rising scrutiny over the risk of foreign influence.

Security experts note that cryptocurrency transfers can move money across borders far more easily than traditional banking channels. They add that it creates an obvious concern in a system that already prohibits foreign donations in nearly all situations.

Lawmakers from different parties have urged the government to tighten the rules, arguing that current safeguards are not strong enough. They point to the difficulty of identifying the origin of crypto funds and the possibility that anonymous transfers could hide improper activity.

Concerns have grown since Nathan Gill, a former Reform leader, was sentenced to over ten years in prison for taking payments to deliver pro-Russian messages during his time in the European Parliament. Farage has dismissed Gill as a bad apple, but the episode has sharpened calls for tighter financing rules.

The new measure is expected to introduce several new requirements. These include limits on donations made through shell companies and mandatory checks on any funds that could expose campaigns to overseas interference.

Britain’s cautious approach contrasts with the U.S., where crypto donations have become routine in federal races. American political groups backed by crypto interests spent over $190 million in last year’s election cycle. In the UK, by comparison, the role of crypto in campaign finance remains extremely small. No major party referenced crypto in its manifesto during the 2024 election, and only a handful of crypto donations have ever been recorded.

The global crypto ecosystem, including notable companies like BitMine Immersion Technologies Inc. (NYSE American: BMNR), will be hoping that the UK takes a progressive regulatory approach to crypto rulemaking so that the country isn’t left behind by its developed counterparts.

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