UK lawmakers have called for an immediate moratorium on cryptocurrency donations to political parties, citing risks to national security and electoral integrity.
A cross-party parliamentary committee urged the government to pause crypto donations until clearer regulatory safeguards are in place ahead of the next general election.
The proposal includes stricter oversight measures, such as creating a Political Finance Enforcement Unit and lowering the disclosure threshold for donations to £500.
“We see no democratic imperative to permit the use of crypto in political finance until adequate safeguards are in place,”
The committee said.
The recommendation follows growing concern over foreign interference, with lawmakers warning that crypto can obscure the origin of funds and enable undisclosed micro-donations.
Crypto donations are currently legal in the UK, but scrutiny has increased after Reform UK began accepting digital asset contributions and disclosed multimillion-dollar donations.
The committee also pointed to other jurisdictions, including Ireland, which have banned crypto political donations due to similar concerns about transparency and security.
Lawmakers have proposed tougher penalties for violations, including extending maximum prison sentences to three years for offences involving foreign financing.
The move reflects broader regulatory pressure on crypto’s role in political funding, as policymakers seek to balance innovation with safeguards against misuse.