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A committee of the UK Parliament calls for an immediate ban on political parties accepting cryptocurrency donations
According to Decrypt, the UK Parliament's Joint National Security Strategy Committee has called for an immediate ban on political parties accepting cryptocurrency donations, stating that it poses "an unnecessary and unacceptable high risk" to the political finance system. The committee recommends writing a binding ban into the Representation of the People Act until stronger safeguards are established.
The report also calls for the establishment of a new political finance enforcement department within the National Crime Agency and for strengthening rules regarding overseas donors. Currently, Reform UK is the only major party accepting crypto donations, having received £12 million in donations from investors associated with Tether last year, prompting requests for an investigation.
Cybersecurity experts warn that a KYC-based ban could force political parties to centrally store personal data, creating a "huge honeypot" for opponents and inadvertently introducing new crypto vulnerabilities. The committee acknowledges that crypto tools can obscure the source of funds but believes that current regulation is insufficient and the opportunities to evade rules are too high.
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