# UK Moves to Ban Crypto Donations in Elections New bill proposes complete prohibition of political donations made via crypto assets. - **Source:** [Bitcoin News](https://brifing.si/source/d8aeaf1e-9839-4dad-9d25-7a6bf3fbeef8) - **Published:** 2026-09-04 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/b104ed64-66cd-478f-b8ac-fa97d9690189 ## Complete Ban on Crypto Donations The UK government is preparing legislation to completely ban cryptocurrency donations in elections, following recommendations from the April 2026 Rycroft report. The proposed amendment will extend to cover donations 'made from proceeds generated by crypto-assets.' The existing ban will be made permanent through inclusion in the Representation of the People Bill, while expanding the Electoral Commission's powers. ## Key Warnings from Rycroft Review The independent Rycroft review warned against foreign financial influence and recommended a moratorium on crypto donations. According to the report, any lifting of the ban would require Parliament and the Electoral Commission to verify the effectiveness of relevant regulations. The Labour government under Keith Starmer implemented the ban retroactively based on these recommendations. ## Cross-Party Legislative Proposals Labour Party's Angela Rainer proposes amending the 2000 Political Parties Act to block crypto donations to registered parties. However, experts like Tim Picton warn this regulation remains insufficient as it doesn't cover crypto exchanges and memecoins. Critics emphasize these loopholes could enable foreign interference in UK politics. ## Comprehensive Alternative Proposal Liam Byrne's alternative bill seeks to ban the use of crypto exchanges and payment platforms for processing political donations. Byrne specifically highlights risks from memecoins enabling anonymous donations. His proposal also regulates the conversion process where crypto gets exchanged for fiat currency before reaching parties. ## Concerns Over Trump Token Model Experts express concerns about the UK seeing proliferation of models similar to Trump tokens. In the US, these tokens became significant fundraising tools during presidential campaigns. Picton warns foreign actors could exploit such mechanisms to buy influence and gain privileged access to leaders. ## Reform UK's Donation Controversies Revelations that former BitMEX executive Ben Delo - pardoned by Trump - donated £4 million to Reform UK sparked debates, with claims the funds originated from crypto. While recorded as cash transactions, these donations follow previous crypto-related scandals involving the party, highlighting the urgency for regulation. ## National Security Concerns Senior MPs emphasize national security risks, warning crypto donations could become tools for foreign influence. Particularly concerning are anonymous memecoin donations and indirect funding through exchanges, which pose major transparency and accountability challenges in political financing. ## Turning Point in Political Finance The UK's crypto donation ban could mark a significant global turning point in political financing rules. While details will be finalized in coming weeks, this move may inspire similar regulations worldwide. The development is seen as potentially setting a precedent, especially for countries facing high risks of foreign interference. ## Sources covering this story - https://news.bitcoin.com/regulation-and-legal/uk-parliament-preps-crypto-donation-ban-in-new-election-bill/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._