- Labour MPs seek a permanent crypto donation ban to replace the temporary moratorium.
- Proposed reforms would cut campaign spending limits from £34 million to £24.4 million.
- Farage’s £5 million private gift has intensified scrutiny of crypto-linked political funds.
UK Labour MPs are preparing to challenge the government’s funding reforms by demanding a permanent ban on cryptocurrency donations. Their proposal would replace the temporary moratorium with a lasting prohibition.
Liam Byrne is leading the effort through amendments to the Representation of the People Bill. Supporters say the change would reduce anonymous and impermissible donations in UK Politics.
Labour MPs Seek Tougher Campaign Finance Controls
Members of the all-party anti-corruption group are canvassing support for four amendments aimed at strengthening the legislation. By midday Thursday, the proposals had secured at least 20 signatures, showing growing parliamentary backing.
At the center of the package is an amendment that would prevent political parties and candidates from accepting any crypto donation. Byrne has therefore urged lawmakers concerned about democratic integrity to support the wider reforms.
The proposed changes also extend to campaign spending. Former Labour cabinet minister Anneliese Dodds has called for the spending ceiling to be reduced from £34 million to £24.4 million.
Dodds argued that political campaigning had entered a funding arms race and said the public wanted spending limits set at a more reasonable level. Her proposal adds another layer to the broader push for tighter controls on political finance.
The bill is scheduled to enter its report stage in the House of Commons next Tuesday. Until then, Labour MPs are seeking wider support before lawmakers formally debate the amendments.
Farage Funding Controversy Fuels Crypto Donation Scrutiny
The initiative follows scrutiny of Reform UK leader Nigel Farage, who resigned as Clacton MP earlier this week. According to reports, he faces parliamentary investigations concerning crypto-linked funding.
Farage received a £5 million gift from Thailand-based cryptocurrency investor Christopher Harborne in early 2024. Bankers processing the transfer filed a Suspicious Activity Report with the National Crime Agency.
Questions have also surrounded Farage’s ties to George Cottrell, a convicted fraudster linked to offshore crypto gambling platform Tether.bet. Farage maintains that the £5 million was a private, non-political gift received before he became an MP.
He has denied wrongdoing, breaking the law, or misusing public money. Nevertheless, the controversy has strengthened demands for tighter Cryptocurrency Regulation in political finance.
Related: Farage Quits Parliament, Seeks Re-Election Over Donation Allegations
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