Matt Western, chair of the UK's Joint Committee on National Security Strategy, has called for a temporary halt on cryptocurrency donations to political parties. He cited concerns over foreign interference potentially impacting future elections.
Western recommended adding a "temporary moratorium" on crypto donations to the upcoming Representation of the People Bill. This moratorium would remain in place until the Electoral Commission provides official guidance.
He expressed worry that foreign states might exploit political finance to influence the UK's positions, particularly concerning its role in Europe and relations with the US and EU.
Western also proposed that the Electoral Commission's guidance should mandate political parties to utilize only crypto services registered with the Financial Conduct Authority. Donations from anonymous sources or those involving the upstream use of crypto mixers should be prohibited. Furthermore, parties receiving crypto should convert it to fiat currency within 48 hours.
In a broader recommendation, Western suggested establishing a national police force to specifically address political finance and combat foreign interference. He noted that responsibilities for such oversight are currently divided among multiple agencies.
Additional proposals include source-of-wealth checks for donors, a review of sentencing for electoral finance offenses, and enhanced powers for the Electoral Commission to compel institutions to disclose donation sources.