UK Prime Minister Keir Starmer said the government will introduce a moratorium on cryptocurrency donations to political parties, citing risks linked to illicit finance and foreign interference.
The proposal would require political parties to return any crypto donations once the rules take effect, as part of a broader effort to safeguard electoral integrity.
“We will act decisively to protect our democracy,”
Starmer told MPs, pointing to a government review that warned of “stark threats posed by illicit finance.”
The policy follows recommendations from a review led by former senior civil servant Philip Rycroft, which called for a temporary halt until stronger transparency measures are in place.
Under the plan, the moratorium is designed as a stopgap rather than a permanent ban, though parties could face criminal penalties if they fail to comply after a grace period, while concerns remain that crypto transactions can obscure fund origins.
The issue has gained political attention after Reform UK reportedly received tens of millions of pounds in crypto donations, prompting calls from lawmakers for stricter controls or an outright ban.
The move comes as the UK continues developing its broader crypto regulatory framework, including rules covering stablecoins, trading platforms, and custody services.