UK Minister Demands Crypto Donation Ban—Calls Political Funding a ’Democracy Time Bomb’

Another day, another politician clutching pearls over crypto. A UK minister just dropped a grenade in the campaign finance debate—pushing to outlaw political donations made in Bitcoin and other digital assets.

"The funding of democracy is a controversial area," the minister declared, with all the subtlety of a sledgehammer. Translation: They’d rather keep dark money flowing through good old-fashioned offshore accounts—at least those leave a paper trail auditors can pretend to follow.

While regulators globally wrestle with crypto’s role in elections, this move reeks of selective outrage. After all, nothing screams 'democratic integrity' like letting hedge funds and lobbyists write checks with one hand while drafting legislation with the other.

Here’s the cynical kicker: banning crypto donations won’t stop political money laundering—it’ll just send it back to Swiss banks where it belongs.

— Cryptonews.com (@cryptonews) July 18, 2025

Critical debates on crypto regulation are sweeping across both the UK and the US. In the US, President Donald Trump announced accepting crypto donations. In fact, Thumzup Media Corporation – an advertising tech startup backed by Donald Trump Jr- just secured a board approval to hold up to $250 million in crypto. Meanwhile, the UK government is weighing steps to “safeguard democracy.”

Tom Brake, the director of Unlock Democracy campaign group and a former deputy leader of the Commons, said, “Safeguarding democracy is one of any government’s most important duties. Crypto donations, and the heightened risk of crypto being used to channel foreign money into UK politics, are a clear and present danger to democratic integrity.”

Crypto Firms to Collect User Data from 2026, Hefty Fine for Misreporting

The UK has been introducing back-to-back crypto reforms through HM Revenue and Customs (HMRC). The UK government has introduced another sweeping regulatory move, driven by the adoption of the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework (CARF). Starting 1 January 2026, all crypto firms will have to collect and disclose detailed user and transaction data.

“From 1 January 2026 if you provide cryptoasset services in the UK, you’ll have new responsibilities for collecting data and reporting it to HMRC,” the 14 May 2025 announcement said. 

All cryptoasset service providers – both domestic and foreign platforms serving UK clients – must collect and report extensive information on every user and every transaction. This will include address, country of residence, national insurance number, unique taxpayer reference, and more.

UK Set to Ban Buying Crypto with Credit Cards and Loans

If you’ve been using your credit card to buy crypto in the UK, those days might be numbered. The Financial Conduct Authority (FCA) has officially proposed a rule that WOULD stop retail investors from purchasing cryptocurrencies using borrowed funds. That includes credit cards, personal loans, and even loans from crypto-specific lenders. However, some crypto users worry that the UK ban will discourage innovation and limit market access.

The MOVE is part of a broader effort to protect consumers from racking up debt chasing volatile digital assets. And with more people jumping into crypto using money they don’t actually have, the UK’s top financial watchdog is sounding the alarm.

DISCOVER: Best New Cryptocurrencies to Invest in 2025

Key Takeaways

• British authorities see crypto’s pseudonymity as a heightened risk for illicit campaign funding and foreign meddling.

• The UK’s Financial Conduct Authority (FCA) has also proposed banning crypto purchases made with borrowed funds, including credit cards and personal loans.