UK lawmakers are considering a permanent ban on digital asset donations to political parties — and it’s directly tied to the Nigel Farage scandal.
Labour MPs are looking to overhaul donation rules after it emerged that Reform UK leader Nigel Farage personally accepted millions of pounds in what he called “gifts” from crypto industry figures. A temporary moratorium on crypto donations was enacted back in March. Now some want to make it permanent.
“Amendments to the representation of the people bill which my colleagues and I have tabled are vital safeguards against the wider threat that’s seen $268 million come flooding in to build a whole media political complex behind populists in Britain,” said Liam Byrne, the Labour MP leading the push.
Farage resigned as MP for Clacton on Tuesday after reports revealed he accepted a $6.7 million “gift” from crypto billionaire Christopher Harborne, plus staff, security, and transport from convicted fraudster George Cottrell. Farage maintains he did “nothing wrong” and said the parliamentary standards commissioner is investigating.
His resignation triggered a by-election that major parties — Labour, Conservatives, Liberal Democrats, and Greens — won’t contest. Starmer called it a “desperate stunt.”
There’s another angle here. Andy Burnham, the former Manchester mayor who just won a by-election to return to Parliament, is now the frontrunner to replace Starmer as Labour leader and PM. As Greater Manchester mayor, Burnham pushed for the city to become a “Web3 powerhouse.” If he takes the top job, his stance on crypto regulation — including this donation ban and FCA oversight — will matter a lot.
Lawmakers are expected to debate amendments to the donation rules next week.
