Led by Prime Minister Keir Starmer, the British government announced an immediate moratorium on cryptocurrency donations to political parties, citing concerns that digital assets could be used to hide the origin of foreign money in British politics, according to the Press Association.
The move places crypto at the center of a broader crackdown on foreign interference, signaling that regulators are increasingly treating anonymous digital payments as a democratic risk rather than just a financial one.
The ban, triggered by the government-commissioned Rycroft review, covers donations of any size and comes into force today. Parties have 30 days to return any crypto received once the legislation is passed, after which criminal penalties apply. Donations from British expats abroad will also be capped at £100,000 a year.
The review’s author, former senior civil servant Philip Rycroft, stopped short of calling for a permanent ban – presenting the moratorium as a pause for regulation to catch up with reality. But with the rules included in the bill on the representation of the people currently before Parliament, the bar is high to meet them.
“I wasn’t here to advocate for any political party,” Rycroft said. “I was here to look out for the best interests of our democratic processes.”
Members of Reform UK, which is currently leading the polls, walked out of Parliament upon the announcement. Prime Minister Keir Starmer has hit out at Reform leader Nigel Farage, suggesting he would “say anything, no matter how controversial, if he was paid to do it”.
