UK review recommends crypto donation pause over foreign interference risk

Philip Rycroft, a former senior civil servant, recommended that the UK government impose a temporary moratorium on political donations made in crypto assets in an independent review published on Wednesday.

“The government should legislate in the Representation of the People Bill to introduce a moratorium on political donations made in cryptoassets,” Rycroft wrote in the report, which was commissioned by the government in December 2025.

The review said crypto assets could provide a route for foreign money to enter the UK political system because of incomplete regulation, the difficulty of tracing the “ultimate ownership” of some assets, and the possibility of breaking larger donations into smaller transfers. It noted that donations below 500 British pounds ($669) fall outside the normal permissibility test, while formal reporting thresholds for political parties are higher.

The review comes a week after a separate report by the Joint Committee on the National Security Strategy called on the government to impose an immediate moratorium on crypto donations to political parties until the Electoral Commission produces statutory guidance ahead of the next general election.

The Rycroft Review: Report of the independent review into countering foreign financial influence and interference in UK politics. Source: gov.uk

Rycroft leaves room for future crypto donations

Rycroft wrote that the scale of crypto political donations is currently unknown because none have yet reached the reporting threshold that would require disclosure to the Electoral Commission.

Still, the report argued that political crypto donations could be allowed under “tight supervision” by the Electoral Commission and through UK-regulated cryptocurrency exchanges.

Rycroft added that the temporary pause in the political crypto donations should not be seen as a “prelude to an outright and permanent ban,” but rather an “interlude” allowing the regulatory environment to catch up to the reality of crypto.

The recommendation comes amid wider scrutiny of crypto and foreign-linked money in British politics. Reform UK, led by Nigel Farage, received a record $12 million political donation from crypto investor Christopher Harborne in the third quarter of 2025 and another $4 million donation in the fourth quarter of 2025. Reform UK was the first political party to start accepting crypto donations in May 2025.

UK lawmakers reportedly started considering a ban on political cryptocurrency donations in December 2025. They are currently legal in the country, subject to permissible rules under the Electoral Commission guidance.

In January, seven senior UK Labour Party MPs urged Prime Minister Keir Starmer to ban crypto donations to political parties.