UK Minister Calls For Ban On Political Donations Made In Crypto

UK Cabinet Office Minister Pat McFadden has called for election officials to consider banning political donations made in cryptocurrency due to concerns about traceability and the potential for foreign interference in British politics.

McFadden emphasized that it is crucial to know who is making donations, if they are properly registered, and to verify the legitimacy of these contributions to maintain public trust in political financing.

The debate gained urgency after the Reform UK party announced it would accept Bitcoin donations, making it the first British political party to do so, echoing similar moves by Donald Trump's 2024 campaign in the United States.

Critics, including campaigners like Spotlight on Corruption and democracy advocate Tom Brake, warn that the untraceable nature of crypto donations could enable covert foreign interference and undermine democratic processes by making it difficult to scrutinize financial records.

Labour MP Liam Byrne has also pressed for a ban on crypto donations and foreign money, arguing that current party finance rules favor opacity. Both McFadden and Byrne suggest that increased funding for the Electoral Commission and the National Crime Agency is essential to better police political finances, regardless of a ban.

While McFadden has signaled openness to tighter controls, government sources indicate that upcoming election reform proposals may not include an outright ban but will likely strengthen general foreign interference rules to include digital currencies.

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