Matt Western urges UK government to impose temporary halt on crypto donations to political parties over foreign interference risks ahead of upcoming elections

Matt Western, who chairs Parliament’s Joint Committee on the National Security Strategy, is urging ministers to slam the brakes on cryptocurrency donations to political parties.

Not forever, he says — but at least for now.

In a letter sent Monday to Steve Reed, Western called for a temporary moratorium to be written into the forthcoming Representation of the People Bill.

The pause, he argues, should remain in place until the Electoral Commission produces formal, legally binding guidance on how such donations ought to be handled.

The concern? Foreign interference — subtle, digital, and difficult to trace.

A Growing National Security Worry

Western’s warning comes against a tense geopolitical backdrop.

The UK has taken an increasingly prominent military and diplomatic role in Europe, particularly in support of Ukraine.

As global tensions sharpen, he believes the incentive for hostile states to influence British political decisions will only grow.

In his letter, Western cautioned that the next general election — due by August 2029 — could be an attractive target.

Crypto, with its cross-border nature and varying degrees of anonymity, presents new challenges to oversight bodies that were built in a pre-digital era.

He’s not alone in raising the alarm. Back in January, several committee chairs joined him in calling for a full ban on crypto donations.

But when the Representation of the People Bill was introduced in the House of Commons on February 12, no such prohibition was included.

Hence this new push for at least a temporary halt.

Mixers, Anonymous Wallets And The FCA

Western’s proposal doesn’t stop at a pause button.

He also wants tighter guardrails once crypto donations are permitted again.

Specifically, he argues that political parties should only use crypto service providers registered with the Financial Conduct Authority, the UK’s financial watchdog.

Any funds that have passed through crypto “mixers” — tools designed to obscure transaction trails — or that originate from unidentified sources should be barred outright.

And even when donations are accepted, he says parties should convert them into traditional currency within 48 hours.

The aim is to reduce exposure to volatility and prevent funds sitting in digital wallets where tracking becomes more complicated.

The message is clear: if crypto is to play any role in British politics, it must be tightly controlled.

Reform UK’s Crypto Experiment

The debate intensified last year when Nigel Farage announced that Reform UK would accept Bitcoin and other cryptocurrencies from eligible donors.

He made the declaration at the Bitcoin 2025 conference in Las Vegas, positioning his party as digitally forward-looking and aligned with financial innovation.

Reform UK thus became the first major British party to formally embrace crypto contributions.

Supporters argue that cryptocurrency donations are simply the next evolution in political fundraising — no different in principle from online bank transfers or crowdfunding.

Critics counter that crypto’s borderless nature makes it uniquely vulnerable to abuse.

The UK has already faced accusations of foreign meddling in politics through more traditional channels.

Adding blockchain-based funding into the mix, some fear, complicates enforcement even further.

Who Polices Political Finance?

Western’s letter goes beyond cryptocurrency.

He argues that the UK lacks a single, clearly defined enforcement body for political finance and foreign interference risks.

Currently, responsibilities are fragmented across institutions including the Electoral Commission, the Metropolitan Police, Counter Terrorism Policing units, the National Crime Agency, and MI5, among others.

Western suggests establishing a dedicated national police force focused specifically on political finance enforcement and foreign interference threats.

He also proposes tougher sentencing for electoral finance breaches, stronger investigative powers for the Electoral Commission, and mandatory source-of-wealth checks for donors.

In short, he believes the system needs an upgrade for the digital age.

Timing Is Everything

The Representation of the People Bill is due for its second reading on March 2.

That gives MPs a narrow window to introduce amendments if Western’s moratorium is to gain traction.

With the next general election potentially three years away, some might argue there is time to sort this out.

But in politics, groundwork is laid early — especially when it comes to fundraising.

The crypto market itself is also evolving.

Stablecoins, central bank digital currencies, and regulatory sandboxes are being tested in the UK and abroad.

Financial innovation is moving fast; legislation often moves slower.

What’s Next?

The immediate question is whether ministers will accept Western’s call for a temporary ban or resist what some may see as overreach.

If the moratorium is adopted, political parties will need to adjust fundraising strategies and compliance systems quickly.

If it’s rejected, pressure may mount for stricter oversight through secondary legislation or Electoral Commission guidance.

Expect debate in the Commons to sharpen around three key issues: transparency, enforceability and national security.

The closer Britain edges toward the next election cycle, the louder those conversations will become.

The broader challenge remains this: how to balance technological innovation with democratic integrity.

A Digital Dilemma

Cryptocurrency was built to move beyond borders and intermediaries.

Political finance, by contrast, depends on clear rules, accountability and traceability.

Western’s intervention highlights the tension between those two worlds.

Whether Parliament opts for caution or experimentation will shape how Britain navigates the intersection of blockchain and ballot box in the years ahead.

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Summary

Matt Western has urged the government to impose a temporary moratorium on cryptocurrency donations to political parties, citing concerns over foreign interference ahead of the next general election.

In a letter to Steve Reed, he proposed adding the pause to the Representation of the People Bill until the Electoral Commission issues statutory guidance.

Western also called for stricter controls, including limiting donations to crypto services regulated by the Financial Conduct Authority, banning funds linked to mixers or anonymous sources, and requiring parties to convert crypto into fiat within 48 hours.

The debate follows Reform UK’s decision, announced by Nigel Farage at the Bitcoin 2025, to accept Bitcoin donations.

With the Representation of the People Bill heading for further scrutiny, the question now is whether Parliament will tighten the rules on digital political finance — or leave them largely intact.