TechFlow news, December 2 — According to Politico, the UK government is considering a ban on political parties accepting cryptocurrency donations, a move that could impact Reform UK, the party led by Nigel Farage.
Reform UK is the first British political party to accept cryptocurrency donations and earlier this year launched a portal for such contributions. The party has reportedly received "several" donations in cryptocurrency and has pledged to implement "enhanced" controls to prevent misuse.
The restriction on cryptocurrency donations was not included in the government's previously published policy paper on electoral reform. However, three people familiar with the matter said officials are now considering such a ban. Transparency experts have warned that the origins of cryptocurrency donations are difficult to trace, raising risks of foreign funding, criminal proceeds, and money laundering entering the political system. The UK Labour Party's election bill is also expected to introduce new requirements for political parties and their donors, including restrictions on donations from shell companies and possibly requiring parties to document assessments of donations that may pose a risk of foreign interference.
