Highlights
- UK parties will be banned from accepting cryptocurrency donations.
- Overseas UK citizens’ donations capped at £100,000 per year.
- Measures come after a government review of foreign political interference.
Ministers are also capping donations from British citizens living abroad at £100,000 annually.
Housing secretary Steve Reed said the measures would apply to all UK elections, including upcoming local, Scottish Parliament, and Senedd elections.
Parties will have 30 days to return any donations exceeding the cap once the rules take effect, with criminal penalties for non-compliance.
The Rycroft review, commissioned last year, highlighted the risks of foreign states attempting to influence UK politics.
High-profile cases, such as the conviction of former Reform UK MEP Nathan Gill for promoting pro-Russian narratives, underscored concerns over external interference.
Reed described the anonymity of crypto donations as a potential route for illicit funding, calling it “unacceptable and undermining public confidence in our electoral system.”
Reform UK, currently the only Westminster party to have accepted cryptocurrency, has confirmed all crypto donations are converted into cash by a regulated third party and the party meets legal requirements.
Overseas donations limited
The government is still considering other Rycroft recommendations, including banning foreign-funded online political advertisements.
The temporary crypto ban will remain in place until sufficient regulation is established, Reed added, and will be applied retrospectively to all crypto donations from today.
Reform UK recently received a record £9 m donation from British investor Christopher Harborne, the largest single donation by a living person to a UK party.
Party spokesman Zia Yusuf criticised the new measures, claiming they restrict lawful funding for political rivals.
Starmer told MPs the government would “act decisively to protect our democracy,” stressing that foreign interference in UK politics is “real and persistent.”
