The UK government announced a complete ban on cryptocurrency political donations and a hard cap on contributions from overseas electors, both effective immediately as of 25 March 2026. The measures follow the independent Rycroft Review, which was commissioned in December 2025 to assess foreign financial interference risks in British politics.

British citizens living abroad who remain on the UK electoral register will face an annual £100,000 cap on political donations and regulated transactions. The government announced the changes would be introduced as amendments to the Representation of the People Bill, with retrospective effect from that date.

Dirty Money, Untraceable Coins

The Rycroft Review, led by former Permanent Secretary Philip Rycroft, found that tracing overseas donations is considerably more complex than domestic ones. Any suspected malfeasance makes investigations far harder for the Electoral Commission. That complexity, the review concluded, creates a route for large foreign donations to enter UK politics under the radar.

The crypto ban addresses a separate but related concern. Identifying the true ownership of cryptocurrency is difficult by design. The review found that opacity raises real risks of foreign or secret donations entering the political system.

Steve Reed, Secretary of State for Housing, Communities and Local Government, stated plainly that foreign interference and dirty money threaten the integrity of UK elections. He described the crypto ban as essential, saying the UK would now lead globally in confronting what he called a growing threat to democratic freedom.

“A ban on cryptocurrency donations is vital. The UK will now be a world-leader in stamping out this growing threat to freedom, and we will stop hostile foreign states and others who want to weaken and exploit the UK by stoking division and hatred.”

The review also cited specific cases that laid bare the scale of the problem. Former MEP Nathan Gill was convicted and sentenced to 10 and a half years in prison for accepting bribes to promote pro-Russian narratives. Christine Lee, a UK-based lawyer, was identified as working covertly on behalf of the Chinese Communist Party. Both cases exposed serious gaps in existing safeguards.

30 Days to Return Unlawful Funds

Once the legislation formally comes into force, political parties and regulated entities, including candidates and sitting MPs, will have 30 days to return any unlawful donations received during the interim period. Enforcement action follows after that window closes.

The Joint Committee on the National Security Strategy published its own report on 18 March 2026, one week before the government announcement. That cross-party committee had already called for an immediate moratorium on crypto donations, warning the practice poses what it described as an “unnecessary and unacceptably high risk” to political finance integrity. The committee also pushed for a new national police unit housed within the National Crime Agency to lead political finance enforcement.

Dan Jarvis, Security Minister, said national security sits at the core of the government’s decision-making. He described today’s measures as part of a broader effort to make the UK a harder target for foreign interference, referencing the Counter Political Interference and Espionage Action Plan he launched in November last year.

“National security is our first duty. We’ll always take the action necessary to keep our country safe and defeat attempts to meddle in our democracy.”

What the Bill Already Covers

The Representation of the People Bill had already introduced several tighter controls before these amendments. Companies making donations must now show sufficient UK-generated revenue, maintain headquarters in the UK, and be majority owned by UK electors or UK citizens resident here. Unincorporated associations face stricter requirements. Political parties will need to carry out stronger “Know Your Donor” checks before accepting any contribution.

The new amendments build on that. The £100,000 cap on overseas elector donations aligns directly with the Rycroft Review recommendation. The crypto moratorium holds until both Parliament and the Electoral Commission are satisfied that regulatory conditions are strong enough to ensure transparency.

The committee’s March report went further on enforcement. It recommended that donors be required to make an explicit legal declaration confirming they are not acting on behalf of a foreign entity. It also called for prison sentences to be raised to three years for serious violations, and for the declaration threshold on funds received in connection with a donation to drop to £500.

Matt Western MP, Chair of the Joint Committee on the National Security Strategy, warned that the perception of foreign money in politics is already damaging public trust. He said failure to act could leave the UK exposed to a long-term integrity problem, with foreign influence risks growing as the next general election approaches.

The government said it will respond formally to the full range of Rycroft Review recommendations in due course. The aim is to have all related legislation passed before the next UK parliamentary general election.