Britain plans to suspend crypto political donations, Prime Minister says to guard against the risk of illegal funds

British Prime Minister Keir Starmer said the government plans to suspend political donations to political parties through cryptocurrencies to address illicit financial flows and the risk of potential foreign interference. Starmer pointed out during a parliamentary inquiry that the measure would be introduced as part of protecting the British democratic system, citing government assessments that crypto assets could pose "serious illegal financial risks." According to the proposal, the relevant suspension measures are temporary arrangements aimed at buying time for the improvement of regulatory rules. After the new regulations come into effect, political parties will be required to refund the encrypted donations they have received. If they fail to comply with the regulations, they may face criminal penalties after the grace period. The policy stems from a review led by former senior civil servant Philip Rycroft, which recommended suspending the crypto donation mechanism until greater transparency is ensured. In recent years, the role of cryptocurrencies in political financing in the UK has gradually become a focus of controversy. Especially after some political parties accepted large amounts of cryptocurrency donations, regulatory concerns about the transparency of funding sources have continued to rise. The British Labor Party has suspended all political donations to cryptocurrencies.