UK Labour MPs push to permanently ban crypto political donations

A group of UK lawmakers is pushing for a permanent ban on crypto political donations following recent controversy surrounding Nigel Farage.

Members of Parliament from the Labour Party, led by Liam Byrne, are currently gathering support for proposed amendments to the Representation of the People Bill, a key piece of legislation on voting and political finance rules. The revisions would permanently prohibit political parties and candidates from accepting donations in crypto assets, according to the bill's description on the UK Parliament website.

"We simply cannot afford to let our crumbling defences be undermined any further. I would urge any parliamentarian who genuinely cares about the integrity of UK democracy to back these amendments," Byrne said, according to The Guardian. The amendments had reportedly gathered at least 20 signatures by midday Thursday.

The lawmaker further noted that the purpose of the new clause is to "reduce the risks of anonymous and impermissible donations." The bill is set for its report stage at the House of Commons next Tuesday.

Crypto ties under scrutiny

The lawmakers' move comes amid ongoing scrutiny of Reform UK leader Nigel Farage, who resigned as MP for Clacton earlier this week. Farage is facing parliamentary investigations into crypto-linked donations.

The Guardian previously reported that Farage received a £5 million ($6.7 million) gift from Thailand-based British cryptocurrency investor Christopher Harborne in early 2024. Bankers handling the transaction raised concerns over the origin of the funds and filed a Suspicious Activity Report with the National Crime Agency. His ties with George Cottrell, a convicted fraudster linked to offshore crypto gambling platform Tether.bet, were also questioned.

Farage has maintained that the £5 million was a private, non-political gift he received before becoming an MP.

"Let me be absolutely clear: I have done nothing wrong," Farage said earlier this week. "I have not broken the law in any way at all. I have not misused public money."