Key Notes
- The UK government is considering a ban on crypto political donations.
- Officials fear crypto could enable foreign interference and money laundering.
- New rules will force traders to report personal details to exchanges from January.
The British government is considering a ban on cryptocurrency donations to political parties, a move that has placed an uncomfortable spotlight on Nigel Farage’s Reform UK.
Earlier in 2025, Reform became the first political party in Britain to formally accept digital-asset contributions. The policy was presented as part of its push for a “crypto revolution” in the United Kingdom.
According to Farage, the party has already received several crypto-based contributions following confirmation from the Electoral Commission that it had registered the first donation of its kind in British politics.
No Donations via Crypto?
According to a report , although the government’s initial draft of its upcoming Elections Bill did not include a crackdown on crypto funding, sources familiar with internal discussions told Politico that ministers are now actively considering a ban on digital asset donations.
Officials added that further details would be revealed in the new bill. However, there is a growing anxiety about the lack of transparency surrounding digital assets and their potential use in political financing.
Reform, which has climbed ahead in several national polls, has publicly embraced crypto as part of its identity, even launching its own donations portal and promising enhanced screening mechanisms.
Farage, who holds long-term crypto positions, has presented himself as a hero of the industry, similar to US President Donald Trump, who has received millions in donations from major crypto entities like Ripple and entrepreneurs like the Winklevoss brothers .
Farage claimed that he backed digital assets long before his political ally Trump, did. On the other hand, for years, transparency advocates and senior MPs have argued that the source of crypto donations can be difficult to verify.
Political figures such as Pat McFadden, Business Committee Chair Liam Byrne, and Anti-Corruption APPG head Phil Brickell have called for stricter rules to prevent illicit capital, including the proceeds of crime or money laundering, from circulating undetected in the form of cryptocurrencies.
New Crypto Reporting Rules in the UK
Confirmed through the 2025 Budget, the UK will require cryptocurrency traders to disclose personal information to exchanges beginning January 1, 2026, under the Cryptoasset Reporting Framework.
Platforms must provide HMRC with customer details, including transaction histories and tax reference numbers as well. HMRC expects these measures to generate up to $415 million in tax revenue by 2030, an amount officials have framed as enough to finance more than 10,000 newly qualified nurses for a year.
