Led by Prime Minister Keir Starmer, the U.K. government has announced an immediate moratorium on cryptocurrency donations to political parties, citing concerns that digital assets could be used to hide the origins of foreign money in British politics, according to the Press Association.
The move puts crypto at the centre of a wider crackdown on foreign interference, signaling that regulators are increasingly treating anonymous digital payments as a democratic risk rather than just a financial one.
The ban, triggered by the government-commissioned Rycroft review, covers donations of any size and takes effect today. Parties have 30 days from now to return any crypto received once legislation is passed, after which criminal penalties apply. Overseas donations from British expats will also be capped at £100,000 a year.
The review’s author, former senior civil servant Philip Rycroft, stopped short of calling for a permanent ban — framing the moratorium as a pause for regulation to catch up with reality. But with the rules written into the Representation of the People Bill currently going through Parliament, the bar to lift them is high.
“I wasn’t here to look out for the interests of any political party,” Rycroft said. “I was here to look out for the interest of our democratic processes.”
Members of Reform U.K., which currently leads polling data, walked out of Parliament during the announcement. Prime Minister Keir Starmer took a pointed swipe at Reform leader Nigel Farage, suggesting he would “say anything, no matter how divisive, if he is paid to do so.”