UK Security Chair Wants Temporary Ban on Crypto Donations

cointelegraph.com · Feb 26, 2026 · Collected from GDELT

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Matt Western, chair of the UK’s Joint Committee on the National Security Strategy, has urged the government to put a temporary halt on crypto donations to political parties, citing concerns over foreign interference.In his Monday letter to Steve Reed, Secretary of State for Housing, Communities and Local Government, Western recommended adding a “temporary moratorium” on crypto donations to the upcoming Representation of the People Bill. The moratorium would be lifted once the Electoral Commission issues statutory guidance.“We are concerned that foreign state intent to interfere in UK political finance may grow out to the next election,” Western said. “As the security environment worsens and the UK’s military role in Europe grows, the value of influencing the UK’s political positions, for example on Ukraine, or US/EU relations, is likely to increase,” he added. Matt Western’s letter to Steve Reed. Source: UK Parliament In January, a group of MPs who chair parliamentary committees — including Western — advocated for a full ban on crypto donations to be included in the Representation of the People Bill, warning that foreign states could use such payments to influence UK politics. However, the bill did not include a full ban when it was introduced to the House of Commons on Feb. 12. Ban funds from crypto mixers and anonymous sourcesWestern argued that the Electoral Commission’s guidance should require political parties to use only crypto services registered with the Financial Conduct Authority, the UK’s financial services regulator.Donations involving the prior use of mixers or that come from an unknown source should be prohibited, according to Western, and political parties that receive crypto should convert it to fiat within 48 hours of receipt.The next general election in the UK must be held by Aug. 15, 2029. Meanwhile, the Representation of the People Bill is scheduled to have a second reading in the House of Commons on March 2.National police force needed to tackle foreign interferenceWestern’s letter also offers longer-term solutions, such as creating a national police force dedicated to overseeing political finance and combating foreign interference.“Our evidence suggests that there is no clear national enforcement lead for political finance and foreign interference risk. Responsibilities are split across the Electoral Commission, the Metropolitan Police Service, Counter-Terror Policing, the National Crime Agency, MI5 and local police forces,” he said.Related: Revolut among 4 companies chosen to test stablecoins in UK sandboxWestern also recommended source-of-wealth checks for donors, a review of sentencing for electoral finance offenses, higher penalties for breaches and enhanced powers for the Electoral Commission to compel institutions to disclose the sources of donation funds.Reform UK became the first party to accept crypto donations in May last year, with leader Nigel Farage announcing at the Bitcoin 2025 conference in Las Vegas that the group is accepting Bitcoin (BTC) and other cryptocurrency contributions from eligible donors.Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warnsCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy