UK to cap overseas political donations and ban crypto funding for parties
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Mr Nigel Farage's (centre) populist Reform party in 2025 became the first British party to announce it would accept bitcoin donations. At least two-thirds of its money raised came from donors abroad.
PHOTO: REUTERS
- UK caps foreign political donations at £100,000 annually and bans cryptocurrency donations after concerns about illicit funding.
- Review cites foreign interference threats, including from Russia, China, Iran and potentially "allies like the United States".
- These changes, starting March 25, impact Reform UK, which accepted crypto and relied heavily on foreign donors in 2025.
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LONDON - Britain will cap how much donors living overseas can give to political parties and ban cryptocurrency donations following an independent review into the influence of foreign finance, a move that could hurt Nigel Farage’s Reform UK party.
The government ordered the review into foreign financial interference in politics after a former politician in Reform UK was jailed in 2025 for taking bribes to make pro-Russia speeches and statements.
In 2025, the populist Reform UK became the first British party to announce it would accept donations in the form of bitcoin and at least two-thirds of its money raised came from donors abroad.
Led by Mr Farage, a friend of US President Donald Trump, Reform is leading the governing Labour Party in opinion polls and raised more money than its rivals in 2025.
The government said it would cap donations by Britons living abroad at £100,000 (S$133,880) a year, and introduce a moratorium on crypto donations until a system to regulate them effectively was established, implementing the main conclusions of an independent review.
“We will stop hostile foreign states and others who want to weaken and exploit the UK by stoking division and hatred,” housing minister Steve Reed said on March 25.
Threat of foreign interference is real, review says
Mr Reed said “a ban on cryptocurrency donations is vital” to shut off a “clear route” for channelling illicit funds into politics.
He added the cap on donations and crypto ban would both apply from March 25.
In his review, a former senior government official Philip Rycroft said “the threat of foreign financial interference in our politics is real, persistent and sustained.”
There had previously been no limits in Britain on donations to parties if they come from individuals on the UK electoral register or from UK-registered companies or organisations such as trade unions.
Mr Rycroft’s review said Britain faced a persistent problem of foreign countries, including Russia, China and Iran, trying to influence and undermine the country’s democracy and possible new threats from foreign actors and private citizens, including from “allies like the United States”.
In this environment, the review recommended creating a police centre to investigate allegations of foreign interference in politics, reduce the burden of proof for criminal offences and look at toughening sentences.
Reform did not immediately respond to a request for comment. REUTERS
