Britain will ban political parties from accepting cryptocurrency donations and violators may face criminal penalties

British Prime Minister John Stamer said the government will impose a moratorium on political parties accepting cryptocurrency donations, citing the risk of illegal finance and foreign interference. Starmer said in the Prime Minister's questioning session that the move was part of a broader move to protect the integrity of Britain's democratic system. The proposal would temporarily halt all political donations made through cryptocurrencies while regulators develop clearer regulatory mechanisms. Political parties must refund cryptocurrency donations they have received after the rules take effect, and may face criminal penalties if they fail to comply after the grace period expires. The proposal is based on an evaluation report led by former senior civil servant Philip Rycroft, which pointed out that the source of cryptocurrency transactions is difficult to trace, making it difficult to enforce existing campaign finance rules. Following reports that ReformUK had received tens of millions of pounds in cryptocurrency donations, a cross-party parliamentary group called for an immediate ban on cryptocurrency donations, saying it posed an unacceptably high risk to election fairness. The moratorium comes as the UK is advancing a broader digital asset regulatory framework that covers stablecoins, trading platforms and custody services.