UK Lawmakers Push to Ban Crypto Donations Over Transparency and Foreign Influence Risks

TheNewsCryptoPublicado em 2026-01-12Última atualização em 2026-01-12

Resumo

A group of seven senior UK Labour MPs is urging Prime Minister to ban cryptocurrency donations to political parties, citing three major risks: a lack of transparency that hides donor identities, the potential for foreign interference, and the ability to bypass donation limits by splitting payments. Although the government acknowledges these dangers, it considers an immediate ban too complex to implement and may not include it in the upcoming election bill. The issue gained urgency after Reform UK became the first party to accept crypto donations, including a large fiat donation from a crypto investor, raising concerns about crypto wealth influencing politics. The push for a ban is growing to protect trust in elections and uphold financial rules.

A group of seven senior Labour MPs is asking Prime Minister Keir Starmer to ban cryptocurrency donations to political parties and wants this ban to be included in the UK election bill that is expected to be introduced ahead of the local elections in 2026. They are arguing that the crypto donations are a serious risk to democracy.

Three Risks Driving Calls to Ban Crypto Political Donations

The MPs say that the crypto donations create three major problems.

Lack of transparency: Cryptocurrency can hide the sender of the money, and it would be very hard to find out who is donating to the politicians.
Foreign Interference risk: Elections could be influenced by hidden donors, including foreign actors and illegal sources, without voters or regulators being able to see it, which breaks the normal political finance rules.
Easy to escape from the donation limits – Crypto can be split into many small payments that fall below disclosure thresholds.

The UK Government acknowledges the risks but officially says that the full ban may be too complex to implement immediately. As a result, the ban may not be included in the upcoming elections bill. So even though the ministers and MPs accept the danger, they are moving slowly.

The debate is heating up now because Reform UK became the first UK political party to accept crypto donations. Things become more serious when it is revealed that Reform UK received a 9 million GBP donation from a crypto investor in traditional fiat currency, not crypto. This made lawmakers worry that crypto wealth is entering politics.

The major reason for this debate is not about crypto technology but about building trust in the election. These lawmakers could fear that the crypto could undermine the political and financial rules, and voters won’t know who is backing political parties. That’s why Labour MPs are calling for a complete ban, and the support for the ban is growing beyond the Labour MPs.

Highlighted Crypto News:

‌U.S. SEC Delays on Canary PENGU and T. Rowe Price Crypto ETFs, Opens Grayscale Options Comments

Perguntas relacionadas

QWhy are UK lawmakers pushing to ban cryptocurrency donations to political parties?

AUK lawmakers are pushing to ban crypto donations due to three major risks: a lack of transparency that hides the sender's identity, the potential for foreign interference in elections, and the ability to easily circumvent donation limits by splitting payments.

QWhich UK political party was the first to accept cryptocurrency donations, escalating the debate?

AReform UK became the first UK political party to accept cryptocurrency donations, which intensified the debate around political finance and transparency.

QWhat is the UK Government's official stance on implementing a full ban on crypto donations?

AThe UK Government acknowledges the risks but has stated that a full ban may be too complex to implement immediately, so it may not be included in the upcoming elections bill.

QWhat specific risks do the Labour MPs associate with crypto donations regarding election integrity?

AThe Labour MPs associate crypto donations with risks to election integrity, including hidden foreign actors influencing elections, breaking political finance rules, and voters being unable to know who is backing political parties.

QBeyond the Labour MPs, how is the support for the ban on crypto donations described?

ASupport for the ban on crypto donations is described as growing beyond the Labour MPs, indicating broader concern about the risks to democracy and political finance transparency.

Leituras Relacionadas

a16z Latest Research: Why Blockchain is a Necessity in the AI Era?

A16z report argues that blockchain is essential in the AI era to address the fundamental challenges posed by AI's ability to cheaply and convincingly mimic human activity at scale. The internet lacks a native way to distinguish humans from machines while preserving privacy and usability. Blockchain addresses this by: 1. **Raising the cost of AI impersonation**: Decentralized proof-of-personhood systems (e.g., World ID) make it easy for one human to participate but prohibitively difficult to fake multiple identities, restoring scarcity and increasing the marginal cost of large-scale attacks. 2. **Creating decentralized identity systems**: Unlike centralized IDs, blockchain-based systems are user-custodied, resistant to censorship, and avoid single points of failure. 3. **Providing portable "passports" for AI agents**: Blockchain enables universal, portable identity layers that allow AI agents to operate across platforms with consistent credentials, permissions, reducing forgery risk. 4. **Enabling machine-scale payments**: Blockchain infrastructure (e.g., L2s, rollups) supports microtransactions and nano-payments essential for AI-to-AI commerce, which traditional finance cannot handle. 5. **Enforcing privacy in AI systems**: By integrating zero-knowledge proofs, blockchain allows verification of attributes without exposing raw data, depriving AI of the data needed for imitation and making privacy a core defense. In summary, blockchain rebuilds trust by making impersonation expensive, decentralizing identity, ensuring privacy by default, and giving AI agents native economic rails. It is a critical component for an AI-native internet that operates efficiently without eroding trust.

marsbitHá 8m

a16z Latest Research: Why Blockchain is a Necessity in the AI Era?

marsbitHá 8m

Vitalik's Layer2 Reset: Can It Save Ethereum?

Vitalik Buterin's recent post recalibrates Ethereum's Layer2 (L2) strategy, acknowledging that the original 2020 "rollup-centric" roadmap—based on L2s acting as "branded shards" of Ethereum—no longer aligns with reality. Two key issues are identified: L2 decentralization has progressed slower than expected, with only a few major L2s reaching Stage 1 decentralization, and Ethereum L1 has scaled beyond initial projections, reducing L2s' necessity for scalability. The core conceptual shift introduces a "trust spectrum" framework, recognizing that L2s serve diverse purposes and may legitimately operate at varying decentralization levels (e.g., Stage 0 or 1) without being deemed failures. This allows L2s to pursue different economic and regulatory goals, such as compliant chains with asset-freezing capabilities. Technically, Vitalik proposes a "native rollup precompile" to simplify L2 infrastructure by embedding EVM execution verification directly into Ethereum, reducing audit burdens and improving security. Additionally, a mechanism for "synchronous composability" is outlined, enabling atomic cross-layer transactions between L1 and L2. Responses from L2 teams like Arbitrum, Base, Linea, and Optimism reflect strategic diversity, validating the trust spectrum approach. The post implicitly acknowledges L2s' economic realities, such as sequencer revenue and regulatory constraints, and suggests differentiation strategies for L2s in a cheaper L1 environment. This update demonstrates adaptive leadership, prioritizing realistic evolution over outdated assumptions, and provides a clearer path forward for Ethereum's ecosystem.

marsbitHá 14m

Vitalik's Layer2 Reset: Can It Save Ethereum?

marsbitHá 14m

From $561M inflows to sudden exits – Inside Bitcoin ETF’s February shock

After four consecutive days of over $1.5 billion in outflows, U.S. Spot Bitcoin ETFs experienced a rebound on February 2 with $561.8 million in net inflows, led by Fidelity’s FBTC and BlackRock’s IBIT. However, the trend reversed sharply the next day with $272 million in net outflows, driven by institutional caution as Bitcoin’s price declined. While Bitcoin ETFs faced significant withdrawals, some capital shifted to altcoin ETFs like Ethereum, Ripple, and Solana, indicating a diversification rather than a full exit from crypto. The volatility underscores growing uncertainty, with total outflows reaching $1.7 billion by the end of the period—the largest drop since mid-November.

ambcryptoHá 1h

From $561M inflows to sudden exits – Inside Bitcoin ETF’s February shock

ambcryptoHá 1h

Tom Lee Says BitMine’s Ethereum Losses Are ‘A Feature, Not A Bug’

Tom Lee, chairman of BitMine, has responded to criticism regarding the company's significant unrealized losses, stating they are "a feature, not a bug." Following a major market downturn where Ethereum's price dropped nearly 25%, BitMine, the largest corporate holder of ETH, saw its holdings of 4.285 million ETH fall into substantial loss. Lee argued that these losses are expected during market downturns and are part of the firm's design to track and outperform Ethereum's price over a full market cycle. He compared the strategy to index ETFs, which also experience periods of unrealized losses. Amid the decline, BitMine has staked approximately 67% of its ETH holdings to generate passive income. Ethereum's price recently rebounded to $2,250 after a sharp drop.

bitcoinistHá 1h

Tom Lee Says BitMine’s Ethereum Losses Are ‘A Feature, Not A Bug’

bitcoinistHá 1h

Bitcoin Briefly Falls Below $71,000 as Market Confidence is Repriced

Bitcoin has fallen below the $71,000 mark, reaching its lowest level since November 2024, with a year-to-date decline of approximately 17%. The drop is part of a broader market sell-off, as global risk aversion intensified, pulling down the Nasdaq 100 by over 2% and pressuring rate-sensitive tech sectors. Unlike previous declines driven by crypto-specific liquidations, this downturn reflects wider cross-asset stress, challenging Bitcoin’s narrative as a safe-haven asset. Market sentiment has shifted toward "extreme fear," with analysts warning that losing the $72,000 support could lead to further declines toward $68,000 or even lower. Prediction markets now indicate an 83% probability that Bitcoin falls to $65,000 this year. The crypto market has lost over $460 billion in just one week, with total capitalization down $1.7 trillion from its peak. Despite a brief inflow into U.S. spot Bitcoin ETFs, fund flows have turned volatile, adding to uncertainty. The current environment suggests Bitcoin is increasingly perceived as a high-risk, volatile asset rather than a reliable store of value during market stress.

比推Há 1h

Bitcoin Briefly Falls Below $71,000 as Market Confidence is Repriced