UK Weighs Crypto Donation Ban, Targeting Farage’s Funding

• The news comes as part of discussions around a new Elections Bill and general efforts to tighten rules on political funding
• The move would directly affect Reform UK (the first UK political party to accept crypto donations, via Bitcoin and other tokens) under its leader, Nigel Farage
• In July this year, a high-ranking government official, Pat McFadden, publicly urged regulators to consider a ban on crypto political donations

As of December 2, the UK government is considering a ban on political donations made via cryptocurrency. The news comes as part of discussions around a new Elections Bill and general efforts to tighten rules on political funding.

If approved, the ban would directly affect Reform UK (the first UK political party to accept crypto donations, via Bitcoin and other tokens) under its leader, Nigel Farage.

Related: UK to Require Full Crypto Transaction Reporting Beginning in 2026

Reform UK publicly began accepting crypto donations in mid-2025. At a cryptocurrency conference in Las Vegas, Farage announced his party would accept Bitcoin and other crypto contributions, which made Reform the first major UK party to do so.

At the time, supporters said it would modernize political donations and attract younger voters who use crypto. 

The ‘Dark Money’ Amendment

However, critics argued it could be misused, pointing out that crypto’s ease of moving money across borders and lack of bank-like oversight make it a perfect tool for hiding the source of funds or for “dark money.”

In July this year, a high-ranking government official, Pat McFadden, publicly urged regulators to consider a ban on crypto political donations, noting dangers around traceability and foreign interference.

While the draft of the Elections Bill originally did not include a crypto donation ban, sources cited by the press say ministers are now actively discussing adding the prohibition.

This fast change in stance shows that many UK officials and politicians are increasingly worried about foreign interference, criminal financing, and lack of transparency. Considering that cryptocurrency transactions are not directly tied to a real name, it’s much harder to confirm who is actually sending the money than with regular bank transfers.

From a crypto industry perspective, should this legislation be enacted, other countries might copy it, leading to more rules or bans on using crypto for political donations across the globe.

For some politicians, a sizable part of crypto’s appeal has been its image as modern, free, and independent from traditional systems. A ban could damage that perception, making crypto look more like a problem to be managed by regulators instead of a groundbreaking financial technology.

Related: UK’s Latest Budget Spares Crypto from Punitive Tax, Aligns Rates with Standard Assets