A group of senior Labour MPs is calling on the UK government to impose a complete ban on cryptocurrency donations to political parties, warning that crypto funding poses serious risks to election integrity.
In a letter to Prime Minister Keir Starmer, the seven-member backbench committee urged the government to use the upcoming Elections Bill to explicitly prohibit crypto donations to political parties and individual politicians.
The MPs said their concerns emerged during recent evidence sessions, where issues such as foreign interference, weak regulatory oversight, and the growing role of AI in masking the true source of funds were repeatedly raised.
According to The Observer, committee members warned that crypto could be used to influence UK elections from abroad and exploit gaps in existing campaign finance rules.
Who’s behind the push
The committee is made up of several high-profile Labour MPs, including former minister Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah, and Matt Western.
Momentum builds for a ban
Calls to restrict crypto donations are not new, but pressure has intensified in recent months. The government said last month that it would outline its approach once the Elections Bill is formally published.
Scrutiny increased further after Reform UK disclosed receiving its largest-ever crypto donation—worth £9 million ($12 million). Electoral Commission data shows the donation came from crypto investor Christopher Harborne ahead of local elections in May.
At the same time, former senior civil servant Philip Rycroft is leading a review into foreign financial interference in UK politics, including the role of cryptocurrency. However, that review is not expected to conclude until March 2026.
“Anonymous money has no place in British democracy”
Liam Byrne, who chairs the Business and Trade Select Committee, said the issue comes down to transparency and accountability.
“Political finance must be transparent, traceable and enforceable,” Byrne said, according to The Guardian. He warned that crypto can obscure the true source of donations, enable thousands of small contributions below disclosure thresholds, and open the door to foreign influence.
Byrne stressed that the push is not anti-innovation but about protecting democratic integrity.
“If the Elections Bill doesn’t ban cryptocurrency donations, I will move amendments to make sure it does—and I know scores of MPs will back it,” he said. “Anonymous money has no place in British democracy.”
Emily Thornberry, who chairs the Foreign Affairs Committee, echoed those concerns, arguing that banning crypto donations would help safeguard UK democracy.
“The FAC has been studying threats to democracy around the world,” Thornberry said, “and we’ve learned that crypto is the Russian slush fund of choice.”
