5 Accepted

Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political...

Recommendation
Crypto donations pose an unnecessary and unacceptably high risk to the integrity of the political finance system and public trust in it. We accept that future regulations may institutionalise the use of alternative payment systems for use in donations. At present, however, the opportunity to evade rules is too high, the adequacy of mitigations too low, and the resource cost of attempting to implement acceptable oversight is disproportionate. We see no democratic imperative to permit the use of crypto in political finance until adequate safeguards are in place. (Conclusion, Paragraph 68)
Government Response Summary
The government wholeheartedly agrees with the committee's conclusion and has accepted the recommendation to introduce an immediate moratorium on cryptoasset donations to political parties, effective from March 25, 2026, until sufficient safeguards are in place.
Government Response
Accepted
HM Government Accepted
We agree wholeheartedly with the conclusion of the Committee on this issue. The Rycroft Review similarly recommended that the Government introduce an immediate moratorium on cryptoasset donations to political parties, until such time that the Government is satisfied that there are sufficient safeguards in place to mitigate against risk. On the day the Rycroft Review was published, the Government accepted this recommendation. The anonymity inherent in cryptocurrency transactions creates a clear route for foreign or illicit actors to channel money into our politics, and that is why we agree that a moratorium is necessary until the regulatory environment around cryptoassets is robust enough to protect the integrity of our political finance system from foreign interference. The moratorium will apply to all political donations of any value made through cryptoassets on or after 25 March 2026, with a 30-day period following commencement of the provisions for any previously accepted cryptoasset donations to be returned or forfeited.
Addressee Bodies
Cabinet Office
Timeline
Recommendation age 0.4 yrs
Report published 18 Mar 2026