Matt Western, Chairman of the UK Parliament's Joint Committee on the National Security Strategy, has called for a temporary moratorium on cryptocurrency donations to political parties. In a letter dated February 23, 2026, addressed to Secretary of State for Housing, Communities and Local Government Steve Reed, Western warned that crypto contributions risk obscuring the true source of funds and could facilitate foreign interference in UK elections.
The proposal seeks to include this temporary ban in the forthcoming Representation of the People Bill. The moratorium would remain in effect until the Electoral Commission produces statutory guidance on how to verify and trace digital asset donations. Western argued that the current framework lacks clear rules, leaving parties vulnerable to accepting funds they cannot reliably assess, especially given the heightened security environment and the UK's growing military role in Europe.
"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 stated in the letter. He raised specific concerns about "foreign state intent to interfere in UK political finance" and noted there is currently "no clear national enforcement lead for political finance and foreign interference risk."
Alongside the proposed ban, Western outlined several interim safeguards should crypto donations continue in the short term. These include requiring political parties to process donations only through Virtual Asset Service Providers (VASPs) registered with the Financial Conduct Authority (FCA), and accepting contributions only where there is high confidence in identifying the ultimate source of the funds, not just the wallet address.
Other key recommendations involve prohibiting the use of crypto mixers or tumblers that can obscure asset provenance, mandating that parties convert crypto donations into pound sterling within 48 hours of receipt, implementing stricter source-of-wealth checks for donors, and reviewing sentencing for electoral finance offenses with higher penalties for breaches involving foreign money.
This move follows a previous, unsuccessful attempt by Western and other committee chairs last month to lobby for a full ban on cryptocurrency donations via the Representation of the People Bill. That provision was not included when the bill was introduced to the House of Commons on February 12.
The debate highlights growing tensions in Westminster between safeguarding election integrity and embracing new forms of political fundraising. Reform UK, led by pro-crypto figure Nigel Farage, became the first party at Westminster to accept political cryptocurrency donations in the UK following the Bitcoin 2025 conference in Las Vegas. The party's official website states it does not accept anonymous donations and applies permissibility checks to ensure funds originate from UK-registered companies or individuals on the electoral register.
The UK discussion mirrors trends elsewhere, particularly in the United States, where crypto donations became a defining feature of the 2024 election cycle. Several political figures, including former President Donald Trump and Representative Mike Collins, embraced digital asset fundraising, with the Federal Election Commission permitting such contributions provided they adhere to existing limits and disclosure standards.
