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UK Parliamentary Committee Seeks Temporary Ban on Crypto Donations Over Foreign Influence Risks

UK Parliamentary Committee Seeks Temporary Ban on Crypto Donations Over Foreign Influence Risks

UK committee recommends halting crypto funding until stronger safeguards are in place.

Written by Rahul Dhingra, Edited by David Delima | Updated: 18 March 2026 18:10 IST

UK Parliamentary Committee Seeks Temporary Ban on Crypto Donations Over Foreign Influence Risks

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Concerns grow over crypto’s role in political donations in the UK

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Highlights

Lawmakers warn of risks in crypto-based political funding
Temporary ban proposed until stricter checks are introduced
Focus on preventing foreign influence in UK elections

UK lawmakers are pushing for a temporary ban on cryptocurrency donations to political parties. The reason stated for this concern about foreign influence and the transparency of political funding. A parliamentary committee, drawing members from across the political spectrum, had suggested a pause on these contributions. The representatives want better protections put in place first. The recommendation forms part of broader efforts to tighten political finance rules, as authorities warn that digital assets could be used to channel funds into UK politics without clear oversight.

Panel Seeks Tighter Controls on Digital Asset Contributions

The Joint Committee on the National Security Strategy said in a new report that crypto donations pose an “unnecessary and unacceptably high risk” to the country's political finance system. Lawmakers have called on the government to revise current laws, specifically to impose limits on these kinds of contributions. They have suggested keeping the ban in place until the Electoral Commission provides expected rules for tracking the origins of funds and ensuring compliance with donation regulations.

Committee Chair Matt Western emphasised the need to protect democratic integrity, declaring, “Few things are more important than maintaining trust in our politics.” Legislators cautioned that cryptocurrency transactions could conceal the actual source of funds, potentially enabling foreign actors to circumvent donation restrictions.

US SEC Defines Crypto Securities, Signals Clarity for US Traders

While industry groups like the Chamber of Digital Commerce contend that blockchain transactions can enhance traceability, UK lawmakers argue that existing systems make it challenging to confirm the genuine source of political donations.

The suggestion arrives as the UK's crypto landscape undergoes significant changes. In December 2025, lawmakers took steps to classify cryptocurrencies as property under UK law, a crucial move towards solidifying the legal standing of these digital assets. This action seeks to offer better protections for investors and bring crypto regulations in line with current financial systems, especially as adoption continues to climb.

The proposed halt, in essence, showcases the growing caution of UK regulators concerning crypto's involvement in sensitive areas like political funding. This could strengthen safeguards against illegal financial activities and foreign meddling; it might also impede the integration of digital assets into established systems. Ultimately, the authorities will need to weigh the benefits of innovation against the imperative to protect democratic processes.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Cryptocurrency, Crypto donations, Crypto Regulations

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More