UK Lawmakers Propose Permanent Crypto Donation Ban via New Clause 34 Amendment

A group of UK lawmakers, led by Liam Byrne and including Dr Ellie Chowns, Siân Berry, Carla Denyer, and Adrian Ramsay, has proposed New Clause 34 to the Representation of the People Bill to permanently ban cryptocurrency donations to political parties and election candidates. According to the parliamentary record, the amendment would replace the government's temporary moratorium on crypto political donations, treating donations in cryptoassets as impermissible under UK election law.

The lawmakers stated the measure aims to "prevent parties, regulated donees and candidates from accepting donations in cryptoassets or from the proceeds of cryptoassets, to reduce the risks of anonymous and impermissible donations." Supporters argue that the pseudonymous nature of crypto transactions creates challenges for verifying donors and preventing foreign influence in UK elections. The proposal follows recent controversies surrounding political funding linked to Nigel Farage and Reform UK.