UK Parliament committee urges crypto donation ban in politics, warning foreign influence risks and calling for strict rules before next general election.
A cross-party panel in the UK Parliament asked the government to stop crypto donations to political parties. Lawmakers said it poses too high risks to elections. The recommendation was issued on March 18, 2026. Officials want a temporary ban until strict rules are developed to control political funding.
Committee Warns Crypto Donations Threaten Election Integrity
The warning came from the Joint Committee on the National Security Strategy. The group said crypto donations could facilitate money from hidden foreign sources into politics. It was because of this risk that the committee urged the government to amend the Representation of the People Bill. The bill is currently being considered at the House of Commons.
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Lawmakers said a binding moratorium should commence immediately. This means that political parties have to cease accepting cryptocurrency donations for the time being. Rules need to be clear before the next general election, the committee explained. Without robust safeguards, illegal financing could impact political decisions.
The report also expressed concern that public trust in politics is already weak. Therefore, any hint of foreign influence could do even more to damage confidence. The possibility of outside funding is not something that can be ignored today, officials said. Escalating global tensions make the problem more serious.
Responsibility for monitoring political funding is divided between a large number of agencies. These include the Electoral Commission, police services and intelligence offices. Because of this, enforcement is not strong enough, according to the committee. A single national authority should spearhead investigations in order to get better control.
New Rules Proposed for Political Donations and Crypto Use
The committee recommended the establishment of a special unit within the National Crime Agency. This unit would examine cases of political finances and monitor illegal donations. Officials believe one central body would result in better accountability. It would also make rules easier to enforce throughout the country.
Lawmakers also proposed harsh limits on corporate donations. The report said companies could give very large amounts under current rules. Because of this, the committee wants one total limit for each company. This change would prohibit money from being divided between numerous candidates.
Several new rules were proposed in the case of donations in cryptocurrencies. Parties should only accept funds if there is a clear identification of the source of those funds. In addition to that, any crypto received should be converted to British pounds within 48 hours. This rule would eliminate price risk and provide a clear record.
The committee also said parties must use platforms approved by the Financial Conduct Authority. These platforms abide by financial rules and maintain proper records. Donations involving mixers or tumblers should be banned altogether. These tools conceal the history of transactions and make it hard to trace them.
The proposal comes after recent concerns about foreign influence in politics. The issue is under review by the government through an inquiry headed by Sir Philip Rycroft. The review is set to be completed in March 2026. Officials said the results may lead to new laws before the next election.
