Bitcoin a Tool for Election Interference? UK Calls for Urgent Ban on Crypto Political Donations

▲ Bitcoin (BTC) in the United Kingdom

UK national security experts have raised concerns that political donations made using virtual assets could be exploited by hostile forces as a means of election interference, calling for an immediate ban.

According to cryptocurrency-focused media outlet Cointelegraph, Matt Western, chair of the Joint Committee on the National Security Strategy, strongly recommended in a letter to the government on February 25 (local time) the introduction of a moratorium temporarily suspending political donations made through virtual assets. Western argued that political parties should halt the acceptance of such donations until the Electoral Commission establishes clear legal guidelines and transparency measures regarding crypto contributions.

The recommendation stems from concerns that the anonymity and opaque fund flows associated with virtual assets could serve as tools for foreign hostile actors to interfere in UK politics. Western emphasized the heightened risk that countries such as Russia could use virtual assets like Bitcoin (BTC) to influence election processes or launder illicit funds. He warned, “Preemptive safeguards are necessary to prevent virtual asset technology from being distorted into a tool that exploits vulnerabilities in democratic systems.”

The committee also proposed strict regulatory conditions as prerequisites for allowing crypto donations. All virtual asset contributions should be conducted exclusively through reputable service providers registered with the Financial Conduct Authority, and political parties receiving such donations must convert them into British pounds within 48 hours. These measures aim to prevent confusion arising from asset price volatility and to clearly identify the source of funds.

Controversy has also emerged over the absence of crypto-related regulations in the newly proposed Representation of the People Bill currently submitted to the House of Commons. Western urged the government to take immediate action to fill the legislative gap. National security experts maintain that potential security threats arising from the law’s inability to keep pace with rapid technological advancement must be minimized.

If the UK government adopts the recommendation, significant restrictions are expected on political activities involving virtual assets. The crypto industry is closely watching regulatory decisions aimed at fostering a transparent political funding culture. The UK’s efforts to find an appropriate balance between safeguarding democracy and encouraging technological innovation are likely to serve as an important benchmark for global virtual asset regulation going forward.

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