Labour MPs move to slam crypto donation door shut — permanently 🚪

Labour MPs are preparing amendments to force the UK government to permanently ban political donations made in cryptocurrency, building on a moratorium introduced in March. MPs on Parliament's all-party anti-corruption group are canvassing support for four changes to the Representation of the People Bill, according to the Guardian. One amendment, tabled by Liam Byrne, chair of the business select committee, would replace the temporary moratorium with an indefinite ban and had attracted at least 20 signatures by midday Thursday. "Amendments to the representation of the people bill which my colleagues and I have tabled are vital safeguards against the wider threat that's seen [$268 million] come flooding in to build a whole media political complex behind populists in Britain," Byrne said. "We simply cannot afford to let our crumbling defenses be undermined any further."

A second amendment from former cabinet minister Anneliese Dodds would cut campaign spending limits by nearly a third, from £34 million to £24.4 million, citing what she described as "an arms race in funding political campaigns." Yuan Yang is backing limits on how much money a party can hold when first registered, a response to reports that Rupert Lowe's Restore Britain launched with £2.5 million in the bank without declaring the source. A fourth amendment from Mark Sewards would introduce checks on whether donations risk forming part of a foreign attempt to undermine British democracy.

Prime Minister Keir Starmer announced an immediate moratorium on cryptocurrency donations to UK political parties following the government-commissioned Rycroft review into countering foreign financial influence. The moratorium covers donations of any size, applies retrospectively to all crypto donations received from the announcement date, and gives parties 30 days to return any crypto received once the rules took effect.

The push comes amid scrutiny of Reform UK finances following Nigel Farage's resignation as MP for Clacton, automatically triggering a by-election. Farage confirmed in his resignation speech that the parliamentary standards commissioner was investigating donations to him, including a $6.7 million "gift" from crypto billionaire Christopher Harborne and staff, security, transport and accommodation provided by George Cottrell, a convicted fraudster involved in a crypto casino. Farage said he did "nothing wrong." Reform UK became the first major British party to accept crypto donations in June 2025. The Conservative, Labour, Liberal Democrat and Green parties are not expected to field candidates in the resulting by-election, with Starmer calling Farage's resignation a "desperate stunt."

Philip Rycroft, the former senior civil servant who authored the Rycroft review, had recommended a temporary "interlude" rather than a permanent ban to give regulation time to catch up. The rebel amendment would close that option. Campaigners pressing for a full ban have pointed to outright prohibitions already in place in Ireland and Brazil, and have argued the Electoral Commission lacks the tools needed to trace digital-asset transfers. UK lawmakers are expected to consider the amendments to the crypto donation measures next week.