UK Lawmakers Call for Complete Ban on Cryptocurrency Political Donations to Prevent Anonymous Funding Risks

Odaily News: Members of the UK Treasury Select Committee and the cross-party Crypto and Digital Assets All-Party Parliamentary Group (APPG) have called for an immediate ban on political party donations in the form of cryptocurrency. This proposal stems from recent controversies regarding "dark money" flowing into the political system, with lawmakers believing the anonymity of crypto assets could be exploited to circumvent existing political funding transparency requirements.

The report points out that blockchain addresses make it difficult to confirm the actual beneficiary and could be used to obscure the source of funds, posing risks of foreign interference and money laundering. Some investigations also found that certain crypto donations during the winter of 2025 could be traced back to overseas IP addresses.

According to the proposal, political parties would need to liquidate existing crypto assets and refuse future related donations to ensure political funding returns to the traditional financial system. In response, crypto industry organizations argue that a complete ban might be an overreaction and suggest enhancing transparency through measures like strengthening KYC procedures. (FinanceFeeds)