Some Members of Parliament in the United Kingdom, led by the chairman of the Joint Committee on National Security Strategy, Matt Western, are pushing for a temporary ban on political crypto donations due to concerns over foreign interference.

A letter directed to the Secretary of State for Housing, Communities and Local Government, Steve Reed, has proposed a temporary moratorium on cryptocurrency donations to political parties until the Electoral Commission produces statutory guidance.

In the letter, Western raised concerns around “foreign state intent to interfere in UK political finance” as there is “no clear national enforcement lead for political finance and foreign interference risk.”

“As the security environment worsens and the UK’s military role in Europe grows, the value of influencing the UK’s political positions (for example, on Ukraine, or US/EU relations) is likely to increase,” Western said.

He has urged the Electoral Commission to introduce interim safeguards, such as only allowing political parties to process crypto donations through Virtual Asset Service Providers registered with the Financial Conduct Authority, and accepting contributions where there is high confidence in identifying the ultimate source of the funds.

He also suggests prohibiting the use of crypto mixers or tumblers that can be used to obscure the provenance of assets, alongside a mandate that political parties should convert donations into pound sterling within 48 hours of receipt.

Further, Western recommended stricter source of wealth checks for donors and a review of sentencing for electoral finance offences, alongside higher penalties for breaches involving foreign money and expanded powers for regulators to pursue violations.

Last month, Western, along with a group of other committee chairs, lobbied for a full ban on cryptocurrency donations by including a provision in the Representation of the People Bill. That, however, was not included in the legislation when the bill was introduced to the House of Commons on Feb. 12.

According to a BBC report, Reform UK was the first party at Westminster to accept political cryptocurrency donations in the UK, led by pro-crypto figure Nigel Farage, who announced the move after appearing at the Bitcoin 2025 conference in Las Vegas.

However, details on the party’s official website state that it does not accept anonymous donations and applies permissibility checks to ensure funds originate from UK-registered companies or individuals listed on the electoral register, with contributions above £500 subject to standard compliance procedures.

Crypto donations surge in the U.S.

Across the globe, crypto donations became a defining feature of the U.S. election cycle last year, with several political figures, including current President Donald Trump, having embraced digital asset fundraising. Trump’s campaign began accepting cryptocurrency contributions during the 2024 race.

As previously reported by Coin Insider Daily, Representative Mike Collins from Georgia also announced plans to accept cryptocurrency donations last year.

The Federal Election Commission permits cryptocurrency contributions to political committees, provided they adhere to existing contribution limits, disclosure standards, and other reporting requirements.