UK halts crypto donations to parties, caps expat donors at £100,000

The UK government has imposed an immediate pause on cryptocurrency donations to political parties, effective March 25, 2026. Prime Minister Keir Starmer’s administration cited the risk of foreign money being hidden in digital assets, following findings from the government-commissioned Rycroft review that anonymity can undermine transparency in political finance.

The moratorium covers donations of any size to all parties and will be written into the Representation of the People Bill now before Parliament. Once the law takes effect, parties will have 30 days to return any cryptocurrency they have received; criminal penalties could follow for failing to comply after that window.

Officials indicated the change is designed to block overseas funds from being routed through crypto into UK politics. In a related measure, overseas donations from British citizens living abroad will be capped at £100,000 per year.

Philip Rycroft, a former senior civil servant who led the review, recommended a pause rather than a permanent prohibition to allow regulation and enforcement to catch up with crypto fundraising. He argued that the ability to mask identities through multiple wallets and exchanges makes it harder to verify whether crypto donations come from permissible sources and to maintain an audit trail.

“I wasn’t here to look out for the interests of any political party. I was here to look out for the interest of our democratic processes,” Rycroft stated.

Starmer endorsed the restrictions in a statement to Parliament. During the exchange, he criticized Reform UK leader Nigel Farage, asserting that Farage would “say anything, no matter how divisive, if he is paid to do so.” Members of Reform UK walked out of the chamber during the announcement.

The government described the pause as a temporary safeguard while regulators develop verification standards for donor identities and the origins of digital funds. Because the moratorium is being embedded in primary legislation, any future change would require Parliament to amend the law. The bill is also expected to clarify enforcement powers and penalties as it completes its passage.

Political parties that have previously accepted cryptocurrency will be required to return those funds within the 30-day period once the law takes effect. The government has not disclosed how much crypto parties or candidates currently hold.