UK Plans to Suspend Crypto Political Donations, Prime Minister Cites Prevention of Illegal Fund Risks

Odaily reported that UK Prime Minister Keir Starmer stated the government plans to suspend political donations to political parties made through cryptocurrencies, in order to address risks of illegal fund flows and potential foreign interference.

During parliamentary questioning, Starmer pointed out that this measure will be introduced as part of efforts to protect the UK's democratic system, citing government assessments that crypto assets could pose "significant illicit finance risks."

According to the proposal, the related suspension measures are a temporary arrangement aimed at buying time for the improvement of regulatory rules. After the new regulations take effect, political parties will need to refund any crypto donations already received. Failure to comply may result in criminal penalties after a grace period.

This policy stems from a review report led by former senior civil servant Philip Rycroft, which recommended suspending the crypto donation mechanism until greater transparency is ensured. In recent years, the role of cryptocurrency in UK political financing has gradually become a focal point of controversy, especially after some political parties accepted large crypto donations, leading to increasing regulatory concerns over the transparency of funding sources.

Odaily previously reported that the UK Labour Party has already suspended all cryptocurrency political donations.