UK Prime Minister Keir Starmer has confirmed that the government will impose a moratorium on political donations made through cryptocurrencies, citing the need to protect democratic processes from foreign interference. The announcement came during Prime Minister’s Question Time on Wednesday. Starmer stated that the government would “act decisively to protect our democracy,” with the crypto donation ban forming a central part of that commitment.
The move follows recommendations from the Rycroft Review, an independent inquiry examining foreign financial interference in the UK’s political and electoral systems. The review called for a temporary halt to crypto donations to political parties. Several members of parliament, including the chair of the security committee, had already been pushing for a full ban this year, warning that foreign states could exploit cryptocurrency payments to exert influence over UK politics.
Under the proposed measure, cryptocurrencies would be prohibited as a means of political donation until sufficiently robust regulations are established to prevent untraceable funds and foreign interference in elections. A separate government statement issued Wednesday clarified the scope and intent of the ban. The restriction is designed to remain in place until both Parliament and the Electoral Commission are satisfied that the regulatory framework is strong enough to ensure transparency and confidence in such donations.
Implementing the ban requires amendments to the Representation of the People Bill, which is currently at the committee stage in the House of Commons. The legislation must pass through both the House of Commons and the House of Lords before receiving approval from King Charles III to become law. The government has stated that the changes will take retrospective effect from March 25.
Once the legislation comes into force, political parties and regulated entities such as candidates and members of parliament will have 30 days to return any donations received through cryptocurrency in the interim period. Failure to comply after that window closes would expose parties and individuals to enforcement action, according to the government statement. This provision is intended to address any crypto donations that may have already been accepted ahead of the law taking effect.
Reform UK became the first UK political party to accept cryptocurrency donations in May of last year. Party leader Nigel Farage announced at the Bitcoin 2025 conference in Las Vegas that Reform UK would accept Bitcoin and other cryptocurrencies from eligible donors. The moratorium would directly affect such arrangements once it passes into law. The next UK general election must be held no later than August 15, 2029.
Originally reported by CoinTelegraph.
