Share
MPs have called for a temporary ban on political parties receiving donations in cryptocurrencies amid concern about foreign interference in Britain's democracy.
Parliament's Joint Committee on the National Security Strategy (JCNSS) said a "temporary moratorium" should last until the Electoral Commission could produce a set of rules on accepting crypto donations.
In a letter to Communities Secretary Steve Reed, JCNSS chairman Matt Western said guidance should limit parties to only accepting crypto donations where there can be "high confidence" about the ultimate source of the funds.
Mr Western said parties should have to convert the donation to pounds sterling within 48 hours and called for a ban on donations where the ultimate donor had been obscured.
Cryptocurrency donations are legal, but campaign groups such as Spotlight on Corruption and Transparency International have warned that the anonymity they provide could enable donations from foreign sources.
However, few parties accept crypto donations, with Reform UK being the most prominent.
The proposal follows a JCNSS inquiry into political finance and the risk of foreign interference.
The committee said it was concerned that foreign interference could increase up to the next general election as a deteriorating security situation increased "the value of influencing the UK's political positions".
Mr Western also warned that a "corrosive" belief that foreign interference could impact the democratic process presented a "significant risk to long-term trust in institutions".
As well as a temporary ban on crypto donations, the JCNSS called for harsher sentences for those breaking laws on political finance, tougher checks on the source of donors' wealth and a specialist police unit focused on foreign interference.
A Ministry of Housing, Communities and Local Government spokesperson said: "Through our Representation of the People Bill we are fighting against the risk of foreign interference by strengthening rules around political donations.
"We have also commissioned an independent review, led by former permanent secretary Philip Rycroft, to explore how we can go even further to toughen up the safeguards in place against illicit money from abroad – including cryptocurrencies."