UK Eyes Crypto Donation Ban Amid Fears of Foreign Interference

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The UK government is considering a ban on cryptocurrency donations in political campaigns, warning that their anonymity could enable foreign meddling and illicit funding.

Pat McFadden, a Cabinet Office minister, voiced support for the move on Tuesday, telling Parliament that crypto’s traceability challenges make it a risky tool for political financing. His comments followed questioning from Labour’s Liam Byrne, who raised alarms over unverified donations.

“The financing of politics must be trustworthy,” McFadden said, emphasizing the need for transparency in campaign funding.

The push comes as the US moves in the opposite direction, with politicians like Donald Trump openly embracing crypto donations. The UK’s stance signals growing regulatory scrutiny over digital assets in democratic processes.