Labour MPs push for permanent ban on crypto political donations

Labour MPs are preparing to force the UK government to permanently ban political donations made in cryptocurrency, the Guardian has reported, as part of four amendments to the Representation of the People Bill. Liam Byrne, the Labour chair of the business select committee, is behind the crypto ban amendment, which had at least 20 signatures by midday Thursday, according to the paper. The push comes amid a deepening row over the finances of Reform UK and its leader Nigel Farage. 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.

Background

The UK imposed a moratorium on crypto political donations in March 2026, following the government-commissioned Rycroft Review, which 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. 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. The push to harden the bill comes as pressure mounts over the money behind Reform UK. The party 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 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.

What happened

Labour MPs are preparing to force the UK government to permanently ban political donations made in cryptocurrency, the Guardian has reported, according to Decrypt. MPs on Parliament's all-party anti-corruption group are canvassing support for four amendments to the Representation of the People Bill. One amendment, led by Liam Byrne, the Labour chair of the business select committee, would 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 paper. The crypto ban is one of several measures the rebels want. 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. 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.

Market impact

The sources do not provide any cryptocurrency prices, trading volumes, or capital flows. The only figures present are political and financial in a political context: the crypto ban amendment had at least 20 signatures by midday Thursday; Anneliese Dodds's amendment would cut campaign spending limits from £34 million to £24.4 million; Rupert Lowe's Restore Britain launched with £2.5 million in the bank without declaring its source; Farage accepted a £5 million gift from Christopher Harborne; and the government is proposing a £100,000 cap on donations from expats for their first year back in the UK. The sources also mention that Reform UK 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. No market data is given, so no market impact can be assessed from the sources.

Why it matters

The sources indicate that the push to permanently ban crypto political donations is part of a broader effort by Labour MPs to tighten rules around political funding, amid a row over the finances of Reform UK and its leader Nigel Farage. The amendments, if passed, would replace the current moratorium with a permanent ban, cut campaign spending limits, limit initial party funding, and introduce checks on foreign attempts to undermine British democracy. The government has promised to toughen the elections bill when it returns to the Commons on July 14, including a £100,000 cap on donations from expats for their first year back in the UK. The sources also note that campaigners have pressed for a full ban for months, arguing the Electoral Commission lacks the tools to trace crypto, and point to outright bans in Ireland and Brazil. The outcome could affect how UK political parties can raise funds, particularly those that have embraced crypto donations, such as Reform UK, which became the first major British party to accept crypto donations in June 2025.