UK Committee Urges Moratorium on Crypto Donations

A cross-party parliamentary committee in the United Kingdom has recommended an immediate moratorium on cryptocurrency donations to political parties, warning that such contributions pose significant risks to the integrity of the political finance system amid concerns over foreign interference.

The Joint Committee on the National Security Strategy, chaired by Labour MP Matt Western, outlined its proposals in a report published on Wednesday. The committee urged the government to amend the Representation of the People Bill, currently in committee stage, to prohibit crypto donations until the Electoral Commission develops statutory guidance ahead of the next general election, expected by August 2029. Committee members, including representatives from Labour, Conservatives and other parties, argued that cryptocurrencies' pseudonymous features, such as privacy coins, mixers and cross-chain transfers, make it difficult for regulators to trace fund origins and verify donor identities.

The report highlighted how these technologies could enable foreign actors to influence UK politics indirectly. For instance, donations could be split into micro-transactions below the current £500...