Fifthly, we must address crypto donations. We heard arguments for and against, but found no democratic imperative to allow crypto donations right now. The risks are way too high and the benefits too low, and the resource burden of trying to implement safeguards is disproportionate. We therefore call for a ban—a moratorium—until proper rules are in place, and the Electoral Commission should develop adequate safeguards ahead of the next general election.
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The Bill introduces timely reforms, such as extending the right to vote to young people, and it addresses the rising and ever more concerning issues of harassment and intimidation. With foreign interference expected to intensify the deterioration of the international security environment, and given the threats posed by wealthy donors, crypto and AI, I encourage the Government to go further. That is where I will focus my remarks.
Elsewhere, our Committee is calling for a temporary moratorium on accepting crypto donations until the Electoral Commission produces statutory guidance and stronger systems. We want the Electoral Commission to have stronger powers, including the ability to compel financial institutions to provide information relating to funds connected to donations so that they can be investigated more fully.
Matt Western, chair of the UK’s Joint Committee on the National Security Strategy, has urged the government to put a temporary halt on crypto donations to political parties, citing concerns over foreign interference.
Political donations in cryptocurrency should be subject to an urgent temporary ban to stop foreign interference in British elections, the chair of the national security committee has said.
Matt Western, who leads the committee of MPs and peers, said a moratorium was needed until the risks of donations in cryptocurrency have been dealt with – including adequate checks on the source of the money.
The Chair of Joint Committee on the National Security Strategy has written to the Government urging ministers to temporarily block cryptocurrency donations in political finance.
In a letter to Secretary of State for Housing, Communities and Local Government, Matt Western suggests the Government introduce a temporary moratorium on accepting cryptocurrency donations until the Electoral Commission produces statutory guidance.
In a letter to Communities Secretary Steve Reed, committee chairman Matt Western said guidance should limit parties to only accepting crypto donations where there can be "high confidence" about the ultimate source of the funds.
Western, a Labour MP, said political parties should have to convert the donation to pounds sterling within 48 hours, and called for a ban on donations where the ultimate donor had been obscured
Downing Street has been urged to ban political donations in cryptocurrency by seven senior Labour MPs who chair parliamentary committees.
The committee chairs – Liam Byrne, Emily Thornberry, Tan Dhesi, Florence Eshalomi, Andy Slaughter, Chi Onwurah and Matt Western – called on the government to introduce a full ban in the forthcoming elections bill amid concern that cryptocurrency could be used by foreign states to influence politics.
Keir Starmer must impose a full ban on cryptocurrency being used for political donations or risk losing control of a key new piece of legislation, senior Labour backbenchers warn.
Former minister Liam Byrne, who chairs the business and trade select committee, and six colleagues, including Emily Thornberry, chair of the foreign affairs committee, and Matt Western, who heads the joint committee on national security strategy, have signed an open letter to the prime minister setting out a number of concerns that emerged in committee evidence sessions.
The Minister will be aware that the Joint Committee on the National Security Strategy, which I chair, has been doing a lot of work on defending democracy. I am sure we will welcome the proposals, particularly on illicit finance and cracking down on unincorporated associations. I gently urge her to look closely at cryptocurrencies, which are clearly the currency of choice for criminals and rogue states. For example, one individual has routed £13 million into political organisations in this country through such a currency.
