UK Prime Minister Keir Starmer has announced an immediate moratorium on cryptocurrency donations to British political parties, following the findings of a government-commissioned independent review into foreign financial influence in domestic politics. The ban covers donations of any size and will be applied retrospectively to all cryptocurrency contributions received from the date of the announcement. Parties will have 30 days to return any crypto funds once the relevant legislation is passed, after which criminal penalties will apply.
The decision stems from the Rycroft review, conducted by former senior civil servant Philip Rycroft, which examined ways to limit overseas financial influence on UK political parties. Alongside the crypto ban, the review recommended capping donations from UK citizens living abroad who remain on the electoral register at £100,000 per year. The new rules are being incorporated into the Representation of the People Bill, which is currently progressing through Parliament.
Rycroft clarified in his review that the moratorium should not be interpreted as a step toward a permanent prohibition. He described it as an “interlude” intended to allow the regulatory environment to develop alongside cryptoassets, and to build the expertise necessary for their “safe use” in the political process. His review explicitly stated the pause “should not be seen as a prelude to an outright and permanent ban.”
The only major UK political party known to have accepted cryptocurrency donations is Reform UK. Reports suggest the party received the country’s first-ever crypto donation in October 2025, though no declaration of that contribution has been made to the Electoral Commission. Reform UK members reportedly walked out of Parliament during Starmer’s announcement of the ban.
Reform UK leader Nigel Farage has publicly positioned himself as a supporter of cryptocurrency, previously advocating for reduced capital gains taxes on crypto assets and calling for the creation of a national Bitcoin reserve. During his announcement, Starmer directed a pointed remark at Farage, suggesting there is “only one party leader who has shown he will say anything, no matter how divisive, if he is paid to do so.”
The moratorium represents a significant shift in how the UK government approaches digital assets in the context of political financing. By embedding the new rules within existing electoral legislation, the government aims to close potential loopholes before they can be more widely exploited. The move signals growing concern among lawmakers about the traceability and regulation of cryptocurrency flows into the political system.
Originally reported by Decrypt.
