The United Kingdom is preparing a major step, according to Politico: a ban on accepting cryptocurrency donations to political parties. The proposal, set to be part of the government’s new elections law, is aimed directly at Nigel Farage’s Reform UK – the only British political party that actively accepts crypto donations and highlights them in its campaigning.

Crypto donations under scrutiny. Transparency and foreign influence concerns grow

The debate on tightening political financing rules has been unfolding in Westminster for months, but according to Politico, it is now entering its final stage. A government spokesperson neither confirmed nor denied the possibility of a ban. Details are expected in the upcoming Elections Bill.

The primary motivation is to strengthen trust in the political system and prevent the flow of money of uncertain origin into British politics through digital assets. Critics warn that crypto could facilitate covert foreign funding or even money laundering.

Among the critics are former Cabinet Office minister Pat McFadden, business committee chair Liam Byrne, and Phil Brickell, who heads a cross-party anti-corruption and fair-tax taskforce. They agree that without regulation, such transactions are significantly harder to trace.

Reform UK leads polling. And crypto donations are part of its identity

Reform UK became the first British political party to officially allow financial contributions in cryptocurrency this year. Nigel Farage announced the initiative at Bitcoin 2025 in Las Vegas, describing a “crypto revolution” and a push to move the UK toward a future-focused economy. The party then launched its own portal for receiving crypto donations.

The decision came as Reform UK surged to unprecedented polling leads. National averages currently place the party at around 29 %, ahead of Labour (18 %) and the Conservatives (17 %). The traditional two-party system is under pressure, and the party’s crypto fundraising is drawing increasing attention.

Gill case raises new questions about foreign influence

Calls for regulation intensified shortly after Nathan Gill – former Reform UK leader in Wales – was convicted of accepting payments for pro-Russian speeches in the European Parliament. Although Farage denied any connection to the scandal, the case further fueled debates about foreign influence in UK politics.

Elections Bill will also tighten rules for shell companies

The upcoming elections law is not only targeting cryptocurrency. It will also restrict financing through shell companies or unincorporated associations that may obscure true donors. Parties would be required to conduct risk assessments for donations at risk of foreign influence.

Sources:

https://www.politico.eu/article/uk-cryptocurrency-ban-nigel-farage-reform-uk/

https://www.politico.eu/europe-poll-of-polls/united-kingdom/

https://www.spotlightcorruption.org/nathan-gill-soft-target-interference/

https://www.pressreader.com/uk/western-mail/20251126/281771340486039?srsltid=AfmBOopt3QBCCfgcygWZzJ3G3Z7uuCeifhAooBYFYhwYctlOjt7liYP6