UK Parliament Moves to Ban Crypto Donations in Elections

The UK Parliament is preparing to tackle the issue of cryptocurrency donations in elections. The Representation of the People Bill aims to tighten controls on political financing and expand the Electoral Commission's powers. This bill may enshrine a ban on crypto donations, which was announced by the Labor Government following the Rycroft review.

The Rycroft review recommended issuing a moratorium on electoral donations made using cryptoassets until Parliament and the Electoral Commission are assured that relevant regulation is effective. Several proposals are being discussed regarding this issue, including one by Angela Rayner of the Labor Party, which amends the Political Parties, Elections and Referendums Act 2000 to prevent donations in cryptoassets.

However, Spotlight on Corruption's Senior Advocacy Advisor Tim Picton argues that this amendment does not go far enough to address potential loopholes. He proposes banning the use of crypto exchanges or payment platforms as pathways for receiving and processing crypto payments, which would then be converted to fiat currency received in cash by political parties.

This proposal aims to block foreign actors from using cryptocurrency donations to influence politics, similar to concerns raised about the Trump campaign's use of a token.