Labour MPs seek permanent UK ban on crypto political donations

Labour MPs are preparing to push for a permanent ban on UK political donations made in cryptocurrency, according to the Guardian. For crypto investors, the fight is a reminder that digital assets are being judged not just as markets, but as tools that can move money through politics.

The proposal would turn the government’s current moratorium, meaning a temporary freeze, into a lasting legal ban. In practice, that would stop political parties from accepting donations in digital tokens, rather than relying on a pause that could later be lifted.

The Guardian reported that MPs on Parliament’s all-party anti-corruption group are seeking support for four amendments to the Representation of the People Bill. One amendment, led by Labour MP Liam Byrne, would make the crypto ban permanent.

Byrne, who chairs the business select committee, said Reform UK politicians appeared willing to go to “extraordinary lengths” to avoid scrutiny of their finances, the Guardian reported. He urged MPs to support the changes as a protection for UK democracy. His amendment had at least 20 signatures by midday Thursday, according to the paper.

What the amendments would change

The crypto measure is part of a wider push by Labour MPs to tighten political funding rules. Former cabinet minister Anneliese Dodds has proposed lowering campaign spending limits from £34 million to £24.4 million, a cut of nearly a third, the Guardian reported. She argued that the UK faces “an arms race in funding political campaigns.”

Another amendment, from Yuan Yang, would limit how much money a political party can hold when it is created. The Guardian linked that proposal to the launch of Rupert Lowe’s Restore Britain, which started with £2.5 million in the bank without declaring its source.

A fourth amendment, from Mark Sewards, would require checks on whether donations could be part of a foreign effort to weaken British democracy, according to the Guardian.

Why crypto is central to the debate

The UK imposed its crypto donation moratorium in March after the government-commissioned Rycroft Review examined foreign financial influence in British politics. The review warned that the anonymity of digital-asset transfers could be used to route overseas money into UK political campaigns.

Philip Rycroft, the former senior civil servant who wrote the review, recommended a temporary “interlude” rather than a permanent ban, giving regulation time to catch up. The Labour amendment would go further by closing off crypto donations in law.

Campaigners have argued for a full ban for months, saying the Electoral Commission does not have the tools to trace crypto donations effectively. Ireland and Brazil already have outright bans, according to reports cited by Decrypt.

Reform UK became the first major British political party to accept crypto donations in June 2025, Decrypt reported. The current Labour push comes during scrutiny of Reform UK’s finances and its leader, Nigel Farage.

Reform UK has received multimillion-pound donations from crypto billionaires Christopher Harborne and Ben Delo, though those donations were not made in cryptocurrency, according to Decrypt. Farage is also facing an investigation by the Parliamentary Standards Commissioner over a £5 million gift from Harborne, which was made before Farage announced he would stand as an MP in June 2024. Farage has denied wrongdoing, according to Decrypt.

This story draws on original reporting from Decrypt.