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UK lawmakers call for a complete ban on cryptocurrency political donations to prevent the risks of anonymous funding
Members of the UK's Treasury Select Committee and the All-Party Parliamentary Group on Crypto and Digital Assets (APPG) are calling for an immediate ban on donations to political parties in the form of cryptocurrency.
The proposal stems from recent controversies regarding "dark money" flowing into the political system, with lawmakers believing that the anonymity of crypto assets could be used to evade existing political funding transparency requirements. The report points out that blockchain addresses are difficult to trace back to actual beneficiaries or could be used to obscure the source of funds, posing risks of foreign interference and money laundering. Some investigations have also found that certain crypto donations in the winter of 2025 can be traced back to overseas IP addresses. According to the proposal, political parties must liquidate existing crypto assets and refuse future related donations to ensure political funding returns to the traditional financial system. In response, crypto industry organizations believe that a blanket ban may be an overreaction and suggest enhancing transparency through measures such as strengthening KYC.
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