UK Lawmakers Push to Ban Crypto Donations Amid Election Integrity Concerns
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On July 15, 2025, UK ministers moved to ban political donations using crypto, after Reform UK began accepting Bitcoin in May. Cabinet Office Minister Pat McFadden announced that donations over £500 would be restricted to verified UK-based donors.
The proposal aims to prevent untraceable funds from influencing elections. The Electoral Commission and the National Crime Agency would be responsible for enforcement, with penalties of up to £500,000 or potential criminal prosecution.
Crypto’s Role in Politics Raises Security and Transparency Issues
The proposal is now open for public feedback. Lawmakers say the ban is needed to stop outside influence and keep political funding open and honest. McFadden said the hidden nature of crypto transactions makes them hard to track and can weaken public trust.
His proposal followed Reform UK’s move to accept Bitcoin and back a Cryptoassets and Digital Finance Bill. Groups like Spotlight on Corruption argue that crypto-based donations could allow foreign actors to bypass current donation laws.
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The Electoral Commission would be responsible for verifying donor identities. Under the proposed law, contributions above £500 must come from either a UK national or a registered UK company, with proper documentation to confirm eligibility.
The Commission and the National Crime Agency would oversee compliance and issue guidance to political parties.
Central Bank and Global Trends Support Stricter Rules
Bank of England Governor Andrew Bailey has raised concerns about digital currencies that don’t have proper rules. He warned that stablecoins created by private banks could put the financial system at risk. Instead, he supports using tokenized deposits, which can be traced and are easier to regulate.
His view supports ongoing efforts to make digital finance more open and accountable.
Other countries have made similar moves in 2022, Ireland banned crypto donations to political campaigns. In the U.S., states like California and Oregon have set partial bans or stricter reporting rules.
As more political parties turn to blockchain for raising money, lawmakers worry the current laws aren’t keeping up. Reform UK brought the issue into focus.
In May 2025, the party started accepting Bitcoin donations, sparking debates and calls to tighten laws and keep elections fair.
The threat goes beyond theory. Anonymous wallets, proxy platforms, and smart contracts can allow funds to move across borders without detection.
A post by RWA Watchlist warned that without strict controls, crypto tools could be exploited to funnel money into political campaigns outside legal oversight.
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At the same time, parts of the crypto sector are shifting toward greater transparency.
Mantra Chain launched a $108.8 million fund in July 2025 to support real-world asset tokenization. The initiative focuses on building systems that are traceable and meet institutional standards. It aligns with Bailey’s call for regulated, tokenized finance over unmonitored digital coins.
As the general election approaches, banning crypto donations is being seen as a smart move to help protect UK democracy.
Lawmakers believe it will close the loopholes in the current system and make political funding more fair, open and secure, especially in a constantly evolving digital society
