On 25 March 2026 the then Prime Minister, Keir Starmer, told the Commons that the government would stop political donations made in cryptocurrency. The announcement followed the Rycroft Review into foreign financial influence in UK politics, which warned that crypto donations are hard to trace and recommended a moratorium. Ministers said the pause would cover crypto donations of any amount, would apply from 25 March once Parliament had approved it, and would be added to the Representation of the People Bill. The same announcement set a £100,000 annual cap on donations from British voters living abroad.
Reform UK had announced in May 2025 that it would accept donations in Bitcoin and other cryptocurrencies, and was reported to be the only Westminster party known to have received them. At report stage in the Commons, which ended on 2 September 2026, a government new clause on donations in cryptoassets was agreed. Campaigners reported that it turned the temporary pause into a ban that could only be lifted by a new Act of Parliament. The Bill then went to the House of Lords.
The ban shows how party funding rules change in response to new ways of giving money. It was prompted by concern about foreign interference, but its immediate effect falls mainly on one party, Reform UK, which was the only Westminster party known to accept crypto. That raises the question of whether funding rules can be both fair to all parties and protective of democracy.
It also shows the legislative process at work. The government first promised a temporary pause, then used an amendment to a bill already before Parliament to make it law, and backbenchers and campaign groups pushed for a stronger and permanent ban. Because the rule is backdated to the day it was announced, it also raises questions about retrospective legislation.
Reform UK argued that the change was aimed at its main source of new funding. Zia Yusuf of Reform accused Labour of ‘choking off legal funding for its main rival’, Nigel Farage said Reform’s checks on crypto donations were stricter than the rules for other donations, and Richard Tice said cryptocurrency is a legitimate way to invest within the law.
Speaking for the official Opposition in the Bill committee, Paul Holmes warned that a ban could push crypto money ‘upstream’ and said he preferred a moratorium alongside proper regulation.
Spotlight on Corruption argued that the ban does not deal with crypto that is converted into ordinary money before it is given, and called for donors to declare whether their money came from crypto and for more powers for the Electoral Commission.
The ban had not become law at the last check. It applies from 25 March 2026 only once the Bill is passed and in force, and the House of Lords could still amend it.
The ban is part of the Representation of the People Bill, which was at Lords committee stage at the last check and had not become law. Once in force it is due to apply to donations made from 25 March 2026.
A current change to party funding law, linked to foreign-interference concerns, that students can use on party funding and on how bills are amended.
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Origin: Human-written · Reviewer: Editor
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