British Government Review Calls for Temporary Ban on Cryptocurrency Political Donations Amid Foreign Interference Concerns
Philip Rycroft's independent review has called for a temporary halt to cryptocurrency donations in UK politics while the country develops comprehensive safeguards and official regulatory guidance.
In an independent review released on Wednesday, Philip Rycroft, who previously served as a senior civil servant, has put forward recommendations for the UK government to implement a temporary halt on political contributions made using cryptocurrency assets.
"The government should legislate in the Representation of the People Bill to introduce a moratorium on political donations made in cryptoassets," Rycroft wrote in the report, which was commissioned by the government in December 2025.
According to the review, cryptocurrency assets present a potential avenue for foreign financial influence to infiltrate the British political system due to several factors: insufficient regulatory oversight, challenges in identifying the "ultimate ownership" of certain digital assets, and the ability to split large contributions into multiple smaller transactions. The review highlighted that contributions under 500 British pounds ($669) are exempt from the standard permissibility examination, whereas political parties face higher thresholds for mandatory reporting requirements.
This review emerges just seven days following another report issued by the Joint Committee on the National Security Strategy, which urged the government to implement an immediate halt on cryptocurrency contributions to political parties until such time as the Electoral Commission establishes statutory guidance in advance of the upcoming general election.
Rycroft leaves room for future crypto donations
According to Rycroft's findings, the actual volume of cryptocurrency political contributions remains undetermined at present, as no such donations have yet crossed the reporting threshold that would mandate their disclosure to the Electoral Commission.
Nonetheless, the report contended that political donations in cryptocurrency could potentially be permitted under "tight supervision" by the Electoral Commission and through UK-regulated cryptocurrency exchanges.
Rycroft further emphasized that the proposed temporary suspension of political cryptocurrency contributions should not be interpreted as a "prelude to an outright and permanent ban," but instead as an "interlude" providing time for the regulatory framework to align with the evolving cryptocurrency landscape.
This recommendation arrives during a period of heightened examination of cryptocurrency and foreign-connected financing in British political circles. Reform UK, led by Nigel Farage, received a record $12 million political donation from crypto investor Christopher Harborne in the third quarter of 2025 and another $4 million donation in the fourth quarter of 2025. Reform UK was the first political party to start accepting crypto donations in May 2025.
Reports indicate that UK lawmakers reportedly started considering a ban on political cryptocurrency donations in December 2025. They are currently legal in the country, subject to permissible rules under the Electoral Commission guidance.
During January, a group of seven senior UK Labour Party MPs urged Prime Minister Keir Starmer to ban crypto donations to political parties.