UK lawmakers push to ban crypto donations in political campaigns

While countries like the United States explore crypto as a new campaign fundraising tool, ministers in United Kingdom are sounding the alarm, with one calling for a ban on crypto donations over concerns about traceability and foreign interference.On Tuesday, Pat McFadden, a Cabinet Office minister, said he thought there was a case to be made for banning such donations, considering how hard they are to trace.McFadden addressed the topic after being asked by Labor party member Liam Byrne about banning crypto fundraising, saying that the UK should always keep its “legislation up to date to ensure that the financing of politics can be trusted by the public. The funding of democracy is often a controversial area but I think that it’s very important that we know who is providing the donation, are they properly registered, what are the bona fides of that donation. I think it’s a very important question you’ve asked.”While crypto donations have gained momentum in the US, where figures like US President Donald Trump have openly courted the digital asset sector, the UK’s pushback reflects a growing divergence in how governments are approaching the intersection of crypto and democracy.Both McFadden Byrne said crypto’s potential influence on politics could be addressed by further funding the UK’s National Crime Agency and Electoral Commission.The debate comes two months after Nigel Farage's Reform UK party announced it would become the first political party in the UK to accept political donations in Bitcoin. A UK-based nonprofit anti-corruption watchdog recently released a report that says the risk of foreign entities or funds from criminal origins entering UK politics is increased by allowing crypto donations. It noted that crypto could contribute to “future political interference schemes.”