According to Odaily, British Prime Minister Keir Starmer stated that the government plans to suspend political donations to political parties via cryptocurrency in response to the risks of illicit financial flows and potential foreign interference.
During a parliamentary inquiry, Starmer stated that the measure would be introduced as part of protecting the UK's democratic system, citing a government assessment that crypto assets could pose "serious illicit financial risks."
According to the proposal, the suspension measures are temporary, designed to buy time for regulatory rules to be improved. After the new rules take effect, political parties will be required to return any crypto donations they have received; failure to comply may result in criminal penalties after the grace period.
This policy stems from a review led by former senior civil servant Philip Rycroft, which recommended suspending crypto donations until greater transparency is ensured. In recent years, the role of cryptocurrencies in UK political financing has become increasingly controversial, especially after some political parties accepted large crypto donations, leading to growing concerns among regulators about the transparency of funding sources.
Odaily previously reported that the British Labour Party has suspended all cryptocurrency political donations.
