The UK government is thinking about banning crypto donations to political parties, which could cause major trouble for Nigel Farage’s Reform UK. His party was the first in Britain to accept crypto earlier this year as part of what they called a “crypto revolution.”
Reform UK’s already received “a couple” of crypto donations, according to Farage, who told Reuters about it back in October. The party even set up its own crypto donations portal with what they claim are enhanced controls to prevent misuse. Farage himself holds some crypto long-term and has positioned himself as the “only hope” for Britain’s crypto industry, trying to copy Trump’s embrace of digital currencies.
The ban wasn’t mentioned in the initial policy paper for the upcoming Elections Bill, but three people familiar with recent discussions say officials are now considering it. When asked, the government didn’t deny it, just saying they’d “set out further details” later.
The concern is that crypto donations are really hard to track. Transparency experts worry that foreign money, which is banned under British law, or even proceeds from crime could slip through. Russia’s been increasingly using crypto to evade sanctions and fund destabilization efforts, making this a security issue too.
Conclusion
Britain’s potential crypto donation ban reflects growing concerns about transparency and foreign interference in politics, potentially undermining Reform UK’s fundraising strategy while addressing legitimate security risks in political finance.
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