Labour MPs Push to Make UK Crypto Donation Ban Permanent

In brief Labour MPs plan to rebel next week to toughen the government's political funding bill, including turning a temporary ban on crypto donations into a permanent one, the Guardian reported. The push comes after multimillion-pound donations to Nigel Farage's Reform UK from crypto billionaires Christopher Harborne and Ben Delo, neither of which were made in the form of crypto. The UK froze crypto political donations in March; the amendments would harden that into law and slash campaign spending limits. Labour MPs are preparing to force the UK government to permanently ban political donations made in cryptocurrency, the Guardian has reported. MPs on Parliament's all-party anti-corruption group are canvassing support for four amendments to the Representation of the People Bill, the paper said. One would replace the government's current moratorium on crypto donations with a permanent ban, a proposal the Guardian said is winning broad backing among Labour MPs amid a deepening row over the finances of Reform UK and its leader Nigel Farage. Liam Byrne, the Labour chair of the business select committee behind the crypto ban amendment, said Reform UK politicians appeared willing to go to "extraordinary lengths" to avoid scrutiny of their finances, and urged colleagues to back the changes as a safeguard for UK democracy. His amendment had at least 20 signatures by midday Thursday, according to the paper. Four amendments The crypto ban is one of several measures the rebels want. Former cabinet minister Anneliese Dodds has tabled an amendment cutting campaign spending limits by nearly a third, from £34 million to £24.4 million, arguing the UK faces "an arms race in funding political campaigns." Yuan Yang, an ally of the incoming prime minister, wants limits on how much money a party can hold when it is first set up, after it emerged that Rupert Lowe's Restore Britain launched with £2.5 million in the bank without declaring its source. A fourth, from Mark Sewards, would introduce checks on whether donations risk being part of a foreign attempt to undermine British democracy. Crypto in the crosshairs The UK imposed a moratorium on crypto political donations in March, after the government-commissioned Rycroft Review warned that the anonymity of digital-asset transfers could be used to channel foreign money into British politics. Philip Rycroft, the former senior civil servant who authored the review, called for a temporary "interlude" rather than a permanent ban, to give regulation time to catch up. The rebel amendment would close that door for good. Campaigners have pressed for a full ban for months, arguing the Electoral Commission lacks the tools to trace crypto and pointing to outright bans already in place in Ireland and Brazil . Reform UK became the first major British party to accept crypto donations in June 2025. The Farage funding row The push to harden the bill comes as pressure mounts over the money behind Reform UK. The party has received donations totalling millions of pounds from expat crypto billionaires Christopher Harborne and Ben Delo—none of which were made in the form of cryptocurrency. Farage is separately facing an investigation by the Parliamentary Standards Commissioner over his acceptance of a £5 million gift from Harborne, made shortly before he announced his decision to run as an MP in June 2024. The gift, which Farage claims he was under no obligation to declare and is entitled to spend as he wishes , triggered a suspicious activity report from bankers who were not satisfied they could trace the ultimate origin of the funds, the Guardian reported.   Farage has denied any wrongdoing and triggered a byelection in his Clacton seat to argue voters are on his side, a contest none of Reform's main rivals will fight . Ministers have separately promised to toughen the elections bill when it returns to the Commons on July 14, with government amendments including a £100,000 cap on donations from expats for their first year back in the UK. Not every proposal has equal support: a £100,000 cap on all individual donations, floated by Labour's Stella Creasy, is understood to have less backing than the Byrne, Dodds, Yang and Sewards amendments. A spokesperson for the housing ministry said the government would "keep looking for ways to strengthen the bill" as it moves through Parliament. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!