The UK plans to suspend crypto political donations; the Prime Minister cites the risk of illicit funds.

British Prime Minister Keir Starmer announced that the government plans to suspend political donations to political parties via cryptocurrency to address the risks of illicit financial flows and potential foreign interference. During a parliamentary inquiry, Starmer stated that the measure would be introduced as part of protecting the British democratic system, citing a government assessment that crypto assets could pose "serious illicit financial risks." According to the proposal, the suspension is temporary, designed to buy time for regulatory rules to be finalized. After the new rules take effect, political parties will be required to return any received cryptocurrency donations; failure to comply could result in criminal penalties after a grace period. This policy stems from a review report led by former senior civil servant Philip Rycroft, which recommended suspending cryptocurrency donations until greater transparency is ensured. In recent years, the role of cryptocurrency in British political financing has become increasingly controversial, especially after some political parties accepted large amounts of cryptocurrency donations, leading to rising concerns among regulators about the transparency of funding sources. Odaily previously reported that the British Labour Party had already suspended all cryptocurrency political donations.