Committee urges crypto donation ban and stricter rules to prevent foreign influence in UK politics
A cross-party parliamentary committee has called for an immediate ban on political donations made through cryptocurrency, warning that current arrangements pose a significant risk to the integrity of the UK’s political system.
In a report published on 18 March 2026, the Joint Committee on the National Security Strategy said crypto donations present an “unnecessary and unacceptably high risk” and recommended a binding moratorium until stronger safeguards are introduced.
The committee urged the Government to amend the Representation of the People Bill, which is currently progressing through Parliament, to implement the proposed ban and strengthen wider rules on political finance.
Alongside the proposed ban, the report recommends tighter restrictions on donations from overseas individuals. It suggests that such donors should only be permitted to contribute if they have held sufficient UK-based assets registered with HM Revenue and Customs for at least 12 months.
The committee also called for the creation of a new Political Finance Enforcement Unit within the National Crime Agency. This body would take the lead on investigating political finance risks and provide clearer accountability across enforcement agencies.
Currently, responsibility for overseeing political finance is shared between multiple organisations, including the Electoral Commission, the Metropolitan Police, Counter Terrorism Policing, MI5, the National Crime Agency and other police services. The committee said this fragmented structure results in inadequate governance and weakens public confidence in enforcement.
The report further raised concerns about provisions in the proposed legislation relating to corporate donations. It warned that existing proposals could allow companies to donate the upper limit of their UK-generated revenue multiple times to different recipients, effectively bypassing intended limits.
To address this, the committee recommended that donation caps should apply to the total amount given by a company, rather than being calculated per recipient.
Additional recommendations include requiring donors to make a formal legal declaration confirming they are not acting on behalf of a foreign entity, as well as increasing maximum prison sentences for serious breaches to three years.
The committee also proposed lowering the reporting threshold for funds connected to donations to £500, in an effort to reduce the risk of foreign money being channelled through legitimate donors.
Matt Western MP, chair of the committee, said public trust in politics could be undermined if concerns about foreign financial influence are not addressed.
He warned that the perception of foreign money shaping political decisions is “increasingly corrosive” and that stronger protections are needed ahead of the next general election.
The committee concluded that without urgent action, risks associated with illicit finance and foreign influence in UK politics are likely to grow.