Labour MPs are preparing to force the UK government to permanently ban political donations made in cryptocurrency through amendments to the Representation of the People Bill. MPs on Parliament's all-party anti-corruption group are canvassing support for four amendments, with one proposal replacing the government's current moratorium on crypto donations with a permanent ban. The push comes amid a deepening row over the finances of Reform UK and its leader Nigel Farage, following multimillion-pound donations from crypto billionaires Christopher Harborne and Ben Delo. The UK imposed a moratorium on crypto political donations in March after the government-commissioned Rycroft Review warned that the anonymity of digital-asset transfers could be used to channel foreign money into British politics.
Labour MPs Propose Four Amendments to Political Funding Bill
Liam Byrne, the Labour chair of the business select committee, has tabled an amendment to replace the government's current moratorium on crypto donations with a permanent ban. Byrne said Reform UK politicians appeared willing to go to "extraordinary lengths" to avoid scrutiny of their finances, and urged colleagues to back the changes as a safeguard for UK democracy. His amendment had at least 20 signatures by midday Thursday, according to the Guardian.
Former cabinet minister Anneliese Dodds has tabled an amendment cutting campaign spending limits by nearly a third, from £34 million to £24.4 million, arguing the UK faces "an arms race in funding political campaigns." Yuan Yang, an ally of the incoming prime minister, wants limits on how much money a party can hold when it is first set up, after it emerged that Rupert Lowe's Restore Britain launched with £2.5 million in the bank without declaring its source. A fourth amendment, from Mark Sewards, would introduce checks on whether donations risk being part of a foreign attempt to undermine British democracy.
UK Imposed Crypto Donation Moratorium in March
The UK imposed a moratorium on crypto political donations in March, after the government-commissioned Rycroft Review warned that the anonymity of digital-asset transfers could be used to channel foreign money into British politics. Philip Rycroft, the former senior civil servant who authored the review, called for a temporary "interlude" rather than a permanent ban, to give regulation time to catch up. The rebel amendment would close that door for good.
Campaigners have pressed for a full ban for months, arguing the Electoral Commission lacks the tools to trace crypto and pointing to outright bans already in place in Ireland and Brazil. Reform UK became the first major British party to accept crypto donations in June 2025.
Reform UK Received Millions from Crypto Billionaires
Reform UK has received donations totalling millions of pounds from expat crypto billionaires Christopher Harborne and Ben Delo—none of which were made in the form of cryptocurrency. Farage is separately facing an investigation by the Parliamentary Standards Commissioner over his acceptance of a £5 million gift from Harborne, made shortly before he announced his decision to run as an MP in June 2024. The gift, which Farage claims he was under no obligation to declare and is entitled to spend as he wishes, triggered a suspicious activity report from bankers who were not satisfied they could trace the ultimate origin of the funds, the Guardian reported.
Farage has denied any wrongdoing and triggered a byelection in his Clacton seat to argue voters are on his side, a contest none of Reform's main rivals will fight. Ministers have separately promised to toughen the elections bill when it returns to the Commons on July 14, with government amendments including a £100,000 cap on donations from expats for their first year back in the UK. A £100,000 cap on all individual donations, floated by Labour's Stella Creasy, is understood to have less backing than the Byrne, Dodds, Yang and Sewards amendments. A spokesperson for the housing ministry said the government would "keep looking for ways to strengthen the bill" as it moves through Parliament.
FAQ
What did Labour MPs propose regarding crypto political donations?
Labour MPs are canvassing support for an amendment to the Representation of the People Bill that would replace the UK government's current moratorium on crypto donations with a permanent ban. The amendment, tabled by Liam Byrne, had at least 20 signatures by midday Thursday.
Why did the UK impose a moratorium on crypto political donations?
The UK imposed a moratorium on crypto political donations in March after the government-commissioned Rycroft Review warned that the anonymity of digital-asset transfers could be used to channel foreign money into British politics. Philip Rycroft called for a temporary "interlude" rather than a permanent ban to give regulation time to catch up.
