The UK government has announced an emergency ban on cryptocurrency donations and a £100,000 annual cap on donations from Britons living abroad, in a move that will significantly impact Reform UK. The legislation, subject to MPs' approval, will be backdated to Wednesday due to the urgency of the threat to UK democracy, according to a minister.
The measures, part of new elections legislation, follow an independent review by Sir Philip Rycroft, who warned of foreign influence risks from Iran, Russia, and China, as well as allies like the US. The government will also consider 15 other recommendations from the report, including more stringent checks on donors and a potential cap on all individual donations.
Reform UK has received about £12 million in the past year from Thailand-based investor Christopher Harborne and funding from Monaco-based donors. It is the only major party to accept cryptocurrency donations. Deputy leader Richard Tice accused the government of being 'petrified' of his party, vowing to overturn the changes if in government.
Communities Secretary Steve Reed said the legislation would be applied retrospectively to prevent any window of opportunity for malign actors. Prime Minister Keir Starmer stated the government will 'act decisively to protect our democracy'. The cap on overseas donations will be policed by local election officials, with details on defining 'normally resident' still to be worked out.
