The UK government will ban cryptocurrency donations to political parties and limit donations from British overseas electors to £100,000 per year, measures confirmed by Prime Minister Sir Keir Starmer on March 25. These changes follow a government-commissioned review into foreign interference in British politics, aiming to reduce external financial influence ahead of forthcoming elections.
Legislative Changes Target Cryptocurrency and Foreign Donations
The ban on political donations made through cryptocurrencies and the cap on overseas British donors will take effect immediately via amendments to the Representation of the People Bill currently before Parliament. Communities Secretary Steve Reed announced that these measures address concerns about the “persistent problem of foreign interference,” which the report describes as potentially malign and undermining democratic confidence.
The new rules will suspend cryptocurrency donations, affecting parties such as Reform UK, which reportedly received over £12 million in recent donations from cryptocurrency supporter Christopher Harborne, who is based in Thailand. The ban also limits Reform UK’s access to large sums from overseas-origin donors, delivering a significant financial restriction to the party.
Government-Commissioned Report Calls for Broader Electoral Safeguards
The report, authored by former senior official Philip Rycroft, recommends further measures including restrictions on company donations, a moratorium on cryptocurrency funding for political parties, a ban on overseas-funded political adverts, and lowered burdens of proof for prosecuting electoral offenses. While noting no evidence of foreign finance impacting the 2024 election, the report warns of a “new threat” from both allies and adversaries attempting to exert political influence.
Nigel Farage’s Reform UK has criticized the review as targeting their party, though the report’s author engaged with some Reform officials during its preparation. The Liberal Democrats have called for Reform UK to return cryptocurrency donations from anonymous overseas sources. Electoral Reform Society director Jess Garland welcomed the proposals but urges the government to introduce overall donation caps to reduce the outsized influence of major donors in UK politics.
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