UK ministers are preparing legislation to prohibit political donations made through cryptocurrency, citing concerns over anonymity and the difficulty of verifying the true origin of funds. Officials warn that digital currency donations pose a growing threat to electoral integrity, as crypto wallets can be controlled anonymously and may provide a gateway for foreign interference or criminal activity.
Although the government intends to move ahead with the ban, the measure is unlikely to be included in the upcoming elections bill, which will focus instead on lowering the voting age to 16 and tightening political finance rules. The delay means political parties will continue operating under current guidance for now, including Reform UK, which recently embraced cryptocurrency donations and created its own portal for digital contributions.
Electoral officials have increasingly acknowledged the challenges of tracing cryptocurrency ownership, especially when wallets are based abroad. Transparency advocates argue that without stronger legislation and enforcement, cryptocurrencies could be exploited to obscure donors’ identities and undermine public trust in the political system.
UK Government Moves to Ban Cryptocurrency Donations Over Security Concerns
Date:
Picture Credit: www.commons.wikimedia.org