UK security committee chair urges temp ban on crypto political donations

CoinTelegraph

by Stephen Katte

February 26, 2026

AI-Generated Deep Dive Summary

The UK’s Joint Committee on National Security Strategy has called for a temporary ban on cryptocurrency donations to political parties, citing concerns over potential foreign interference ahead of future elections. Matt Western, chair of the committee, wrote to Steve Reed, Secretary of State for Housing, Communities and Local Government, urging the government to introduce a “temporary moratorium” on crypto contributions in the upcoming Representation of the People Bill. This measure would remain in place until the Electoral Commission provides official guidance. The push for greater scrutiny of digital currency donations comes amid growing worries about foreign state interference in UK political finance. Western emphasized that foreign entities may exploit the anonymity and global nature of cryptocurrencies to influence domestic politics, particularly as elections approach. The moratorium is intended to create a window for regulatory clarity and oversight before allowing crypto donations to resume. In 2022, Reform UK became the first political party in the UK to accept cryptocurrency donations when leader Nigel Farage announced that Bitcoin and other digital assets would be accepted by the group. While this move was seen as innovative, it has raised questions about the transparency and potential risks associated with using cryptocurrencies for political funding. The debate over crypto donations highlights the intersection of technology and politics, where blockchain and decentralized financial systems challenge traditional norms of campaign finance. Critics argue that the anonymity provided by cryptocurrencies makes it difficult to trace the source of contributions, potentially allowing foreign actors to influence domestic politics under the radar. This issue is particularly relevant for those interested in cryptocurrency, as it underscores the broader implications of digital assets in modern governance and international relations. As governments around the world grapple with the regulation of blockchain technologies, the UK’s proposed moratorium on crypto donations serves as a case study in balancing innovation with national security concerns.

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Originally published on CoinTelegraph on 2/26/2026