Cryptocurrency Loophole Could Allow Foreign Billionaires to Secretly Bankroll UK Political Parties
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Campaigners have called for a legal loophole to be closed which potentially allows foreign donations to flow into UK parties via cryptocurrencies.
In a new warning from the non-profit watchdog Spotlight on Corruption, researchers note that the risk of funds of criminal origin, or from hostile foreign actors entering UK politics has increased in the age of untraceable cryptocurrencies - with Reform becoming the first this May to accept donations in crypto.
The risk is that crypto donations are used to avoid already-weak laws limiting foreign interference in UK politics.
Dr Susan Hawley, Executive Director of Spotlight on Corruption, told Byline Times crypto donations to parties "poses unique risks".
"Under the current rules, I would say all the donations in crypto that happen between now and the new elections bill are going to be extremely high risk. The Government clearly needs to tighten the rules."
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And although Reform's donations page for crypto requires donors to prove their identity through a third party verification service, Hawley notes that it's not currently illegal for "gifting" to take place. "For instance, as long as the donation comes from a permissible donor, it doesn't matter who gave that permissible donor the money. And the permissible donor route is now so wide, given that it includes overseas voters as well."
The last Conservative Government scrapped the previous 15-year limit on how long a Brit could live abroad before they could no longer vote or donate to parties from overseas.
Hawley added: "Under the current regime, it seems to me that just having the identity of the last handler of the crypto, so to speak, is not really much protection for British democracy."
A report released by the Centre for Information Resilience in June 2025 identified that the new A7A5 cryptocurrency, which Spotlight on Corruption says has been used in sanctions evasion, was "used in electoral interference in Moldova and may play a role in future political interference schemes." However, there are hundreds of cryptocurrencies, many of which boast about users' anonymity and un-traceability.
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"Some crypto currencies, such as Monero or Zcash, are designed to obscure the identity and location of an individual or entity, making it extremely unlike
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Campaigners have called for a legal loophole to be closed which potentially allows foreign donations to flow into UK parties via cryptocurrencies.
In a new warning from the non-profit watchdog Spotlight on Corruption, researchers note that the risk of funds of criminal origin, or from hostile foreign actors entering UK politics has increased in the age of untraceable cryptocurrencies - with Reform becoming the first this May to accept donations in crypto.
The risk is that crypto donations are used to avoid already-weak laws limiting foreign interference in UK politics.
Dr Susan Hawley, Executive Director of Spotlight on Corruption, told Byline Times crypto donations to parties "poses unique risks".
"Under the current rules, I would say all the donations in crypto that happen between now and the new elections bill are going to be extremely high risk. The Government clearly needs to tighten the rules."
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We're not funded by a billionaire oligarch or an offshore hedge-fund. We rely on our readers to fund our journalism. If you like what we do, please subscribe.
And although Reform's donations page for crypto requires donors to prove their identity through a third party verification service, Hawley notes that it's not currently illegal for "gifting" to take place. "For instance, as long as the donation comes from a permissible donor, it doesn't matter who gave that permissible donor the money. And the permissible donor route is now so wide, given that it includes overseas voters as well."
The last Conservative Government scrapped the previous 15-year limit on how long a Brit could live abroad before they could no longer vote or donate to parties from overseas.
Hawley added: "Under the current regime, it seems to me that just having the identity of the last handler of the crypto, so to speak, is not really much protection for British democracy."
A report released by the Centre for Information Resilience in June 2025 identified that the new A7A5 cryptocurrency, which Spotlight on Corruption says has been used in sanctions evasion, was "used in electoral interference in Moldova and may play a role in future political interference schemes." However, there are hundreds of cryptocurrencies, many of which boast about users' anonymity and un-traceability.
Don't miss a story
SIGN UP TO EMAIL UPDATES
"Some crypto currencies, such as Monero or Zcash, are designed to obscure the identity and location of an individual or entity, making it extremely unlike
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