A cross-party parliamentary committee in the United Kingdom (UK) has urged the government to impose an immediate ban on crypto political donations. The lawmakers are calling for a ban on cryptocurrency donations to political parties, warning of a significant risk to electoral integrity. In a report released on Wednesday, the lawmakers recommended a temporary moratorium through amendments to the Representation of the People Bill until stronger regulatory safeguards are introduced.
Concerns Over Transparency and Financial Oversight
The 47-page report highlights how crypto transactions can bypass traditional financial oversight. Techniques such as privacy coins, mixers, and chain-hopping allow donors to hide the origin and movement of funds. Lawmakers also raised concerns about micro-donations under £500, which can evade disclosure rules and potentially be exploited using AI to split larger contributions.
Industry leaders had mixed reactions to the proposition. Ian Taylor of CryptoUK acknowledged the feasibility of automated micro-donations, whereas Natasha Powell of Kraken argued that blockchain tracing tools can detect suspicious patterns. However, the committee concluded that current safeguards remain insufficient.
The issue comes during rising political donations, with data from the Electoral Commission showing nearly £65 million contributed in 2025. The report also proposes broader reforms, including a new enforcement unit within the National Crime Agency and stricter donor transparency rules.
Analysts at RUSI caution that bans can change circumstances, whereas lawmakers maintain that a moratorium is the most immediate and effective step to protect the UK’s political finance system.
