Ban crypto and cap expat donations to stop foreign interference in British politics, MPs warned
Political donations in cryptocurrencies should be banned and cash from foreigners should be limited to stop foreign interference in British politics, MPs have been warned.
The move, outlined in a new report published on Wednesday, will outlaw Reform UK’s record-breaking £9 million donation from a British businessman based in Thailand.
The independent review into foreign financial influence also found Iran, Russia and China were trying to “undermine” UK democracy.
It warns that foreign interference in the UK is “real and persistent” and that the government must make it a “much higher” priority.
The report also calls for a ban on foreign-backed online political ads and finds posts about Scottish independence have fallen by nearly a quarter following the recent blackout of the Iranian network.
The report was ordered after Nathan Gill, the former leader of Reform England in Wales, was jailed for taking bribes to make pro-Russian statements while a member of the European Parliament.
He called on MPs to impose limits on donations from British citizens living abroad to protect Westminster from foreign interference.
Nigel Farage was forced to defend his £9m donation last year from Thailand-based crypto billionaire Christopher Harborne, saying he “didn’t want anything from me”.
But the donation raised concerns about political financing, as Mr Farage publicly promoted Tether, the cryptocurrency company in which Mr Harborne is a shareholder, shortly after receiving the donation.
Former senior civil servant Philip Rycroft has called on ministers to legislate for a moratorium on the Representation of the People Bill passing Parliament.
He wrote that this should not be seen as “the beginning of a complete and permanent ban” but rather as an interim period for regulation to catch up with reality.
“The government should enact the Representation of the People Bill to impose a moratorium on political donations in crypto assets,” he wrote.
Few parties accept crypto donations, but Reform UK is the most prominent party to do so.
Speaking to reporters, Mr Rycroft said he had spoken to Nigel Farage’s party when preparing the report.
When asked about the Reform sentiment targeted by his crypto advice, he said: “I wasn’t here to look after the interests of any political party, I was here to look out for the interests of our democratic processes.”
Mr Rycroft said attempts to use financial influence to infiltrate politics by gaining influence and sowing division and distrust were not new, but were “arguably more severe”.
He said he was not “pressing the panic button” on the issue but was “ringing the alarm bell” and called on the government to “act quickly” in line with his recommendations.
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