Labour MPs to push permanent ban on crypto political donations

Labour MPs will table amendments next week to the Representation of the People Bill aimed at making the government’s moratorium on cryptocurrency political donations permanent. Proposals include a statutory ban on donations made in crypto and further limits on campaign spending and donations.

MPs from an all-party anti-corruption group are assembling support for four amendments. The lead proposal, driven by Liam Byrne, chair of the business select committee, would replace the temporary moratorium with a law banning donations in cryptocurrency. Byrne had secured at least 20 signatures by midday Thursday and told colleagues Reform UK politicians appeared prepared to go to “extraordinary lengths” to avoid scrutiny of their finances.

Former cabinet minister Anneliese Dodds has tabled an amendment to cut campaign spending limits from £34 million to £24.4 million. Other proposed changes would introduce checks to identify donations that might be part of foreign attempts to influence UK politics, limit how much money a party can hold when it is first created, and cap donations from expatriates during their first year back in the UK.

The moratorium was imposed in March after a government review warned that some digital-asset transfers could be used to channel foreign money into British politics. The ban was applied retrospectively and parties were given 30 days to return any cryptocurrency received. The review recommended a temporary “interlude” while regulation catches up; the amendment would make the restriction permanent.

Pressure for tougher rules rose after Reform UK became the first major British party to accept crypto donations in June 2025 and then reported large cash donations from expatriate crypto investors Christopher Harborne and Ben Delo. One £5 million gift to Reform UK’s leader Nigel Farage was flagged to bankers with a suspicious activity report because they could not trace the funds’ ultimate origin. Farage has denied wrongdoing and told broadcasters, “Believe you me, we’ve looked at this from every legal angle.”

Ministers have indicated they will strengthen the elections bill as it moves through Parliament. Government amendments already proposed include a £100,000 cap on donations from expatriates for their first year back in the UK. A separate proposal to cap all individual donations at £100,000 has been floated but appears to have less cross-party backing. The bill returns to the House of Commons on July 14, when the contested amendments are scheduled for debate.

Campaigners calling for a full ban point to jurisdictions that have outlawed crypto political donations and say electoral authorities lack tools to trace certain digital-asset transactions. Other MPs favour a temporary moratorium to allow time for regulatory and technological measures that could permit transparent, traceable digital donations.