LONDON, Feb. 24, 2026 — The chair of the UK Parliament’s Joint Committee on the National Security Strategy has called for an urgent temporary ban on political donations made in cryptocurrency, citing concerns about foreign interference in British elections, according to a report by The Guardian.
Matt Western, who leads the cross-party committee of MPs and peers, said a moratorium on accepting cryptocurrency donations was needed until the risks associated with such contributions are addressed, including adequate checks on the source of funds.
Western wrote to Steve Reed, the cabinet minister responsible for electoral finance, urging immediate action after the Representation of the People Bill did not include provisions restricting donations made in digital currency.
Committee raises foreign interference concerns
In his letter, Western said the committee was concerned that foreign state intent to interfere in UK political finance may increase ahead of the next election amid what he described as a worsening global security environment.
He said the bill should introduce a temporary moratorium on accepting cryptocurrency donations until the Electoral Commission produces statutory guidance clarifying how such donations should be handled.
Western added that interim guidance should require political parties to use only cryptocurrency service providers registered with the Financial Conduct Authority, accept donations only where there is high confidence in the identity of the ultimate source of funds, and reject donations where mechanisms have been used to obscure the source.
Broader political finance oversight issues
The committee also questioned whether there is a clear national enforcement lead for political finance and foreign interference risks. It highlighted that responsibility is currently divided among the Electoral Commission, the Metropolitan Police Service, counter-terror policing units, the National Crime Agency, MI5, and local police forces.
Western said this division of responsibility “does not inspire confidence that risks are being investigated and mitigated in the most efficient and joined-up way,” and recommended the appointment of a single national police lead for political finance with a specific focus on foreign interference risks.
The committee further raised concerns that the bill’s proposed “know your donor” requirements may not go far enough. Western said there do not appear to be adequate requirements for donors to demonstrate source of wealth and warned that permissible corporate donors or individuals could potentially act as conduits for foreign donations.
Government response
Government sources previously told the Guardian that ministers are examining options to restrict cryptocurrency political donations, but that measures were not ready in time to be included in the current elections bill.
A spokesperson for the Ministry of Housing, Communities and Local Government said the Representation of the People Bill seeks to strengthen rules around political donations to reduce the risk of foreign interference. The spokesperson added that the government has commissioned an independent review, led by former permanent secretary Philip Rycroft, to explore additional safeguards against illicit money from abroad, including cryptocurrencies.
The Electoral Commission currently provides guidance on cryptocurrency donations. Any formal ban would likely require legislation.
