Seven prominent UK Labour Members of Parliament (MPs) sent a letter to Prime Minister Keir Starmer on January 11 asking for a prohibition on political donations made with cryptocurrency to be included in the nation’s upcoming elections bill.
These MPs, who chair key parliamentary committees, highlighted concerns that digital asset donations could hide the true source of funding, allow a series of smaller gifts to avoid disclosure, and increase the risk of foreign intervention in British politics.
According to a report by The Guardian, the correspondence stated that digital currency gifts reduce transparency in campaign finance, complicate tracking donations, and complicate regulatory enforcement in the election process.
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Among the signing MPs was Liam Byrne, who leads the Business and Trade Select Committee, and who pointed out the challenges of monitoring these types of contributions.
Since July 2025, government figures, including Cabinet Office Minister Pat McFadden, have expressed concern about crypto-based gifts in elections.
Officials acknowledge that these transactions pose risks but say it could be difficult to introduce a ban before the final version of the bill is released.
The discussion intensified after Reform UK accepted crypto donations. However, its largest donation, worth £9 million from investor Christopher Harborne, was actually made in traditional currency, despite his wealth having crypto origins.
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