London, United Kingdom. Britain will cap how much donors living overseas can give to political parties and ban cryptocurrency donations following an independent review into the influence of foreign finance. The measures could hurt Nigel Farage’s Reform UK party.
Review ordered after bribery case
The government ordered the review into foreign financial interference in politics after a former politician in Reform UK was jailed last year for taking bribes to make pro-Russia speeches and statements.
Reform UK donations and fundraising
Last year, Reform UK became the first British party to announce it would accept donations in the form of bitcoin, and at least two-thirds of its money raised came from donors abroad. Led by Farage, a friend of U.S. President Donald Trump, Reform is leading the governing Labour Party in opinion polls and raised more money than its rivals last year.
Donation cap and crypto moratorium
The government said it would cap donations by Britons living abroad at 100,000 pounds ($133,880) per year, and introduce a moratorium on crypto donations until a system to regulate them effectively was established, implementing the main conclusions of an independent review.
Housing minister Steve Reed said on Wednesday the measures would prevent hostile foreign states and others from weakening and exploiting the UK. Reed said the ban on cryptocurrency donations was needed to close a route for channelling illicit funds into politics, adding that both the cap on donations and the crypto ban would apply from Wednesday.
Review warns threat is sustained
In his review, former senior government official Philip Rycroft said the threat of foreign financial interference in British politics was real, persistent and sustained.
Previous rules
There had previously been no limits in Britain on donations to parties if they came from individuals on the UK electoral register or from UK-registered companies or organisations such as trade unions.
How do you think the new limits and crypto moratorium will affect party fundraising in the UK?