Yello, Paradisers! The UK government is quietly preparing to pull the plug on cryptocurrency donations in politics, and it’s Reform UK that could be hit the hardest.

Just months after launching a dedicated crypto donation portal, Nigel Farage’s party now faces the possibility of losing one of its flashiest tools for drawing in Web3-savvy supporters.

According to sources close to Whitehall, the upcoming Elections Bill will include measures to ban digital asset contributions entirely. The stated goal? Protecting British democracy from foreign meddling. The unstated goal? Possibly avoiding another news cycle involving convicted allies, crypto ATMs, and Montenegro.

From Pro-Bitcoin Patriotism to Political Tightrope

Farage’s Reform UK styled itself as the home for crypto believers in a country where no major party has even dared put digital assets in its manifesto. It even claimed to be leading a “crypto revolution”, a phrase that plays well on stage, but raises eyebrows in government corridors.

Now, with crypto barely out of its honeymoon in British politics, ministers are reportedly scrambling to bring donations under stricter scrutiny. The reasons are familiar: crypto can cross borders, conceal donors through wallet hopping, and enable “anonymous generosity” from anyone with a ledger and a motive.

And the Electoral Commission is not smiling. It’s been voicing concerns for months about verifying the origin of crypto gifts. Spotlight on Corruption has recommended banning privacy coins, limiting wallet intermediaries, and requiring all donations to go through FCA-regulated firms.

Reform UK’s Crypto Ties Under the Microscope

DonationWatch has tracked over £20 million in donations to Reform UK since its Brexit Party days. Over half of that came from Christopher Harborne, a shareholder in Bitfinex and Tether. Add in the £750,000 from Fiano Cottrell, whose son George, a convicted fraudster and alleged crypto ATM operative, is now an “unpaid volunteer” close to Farage, and the optics grow murky.

The crypto donations so far are reportedly small, but the symbolism matters. Reform’s positioning as crypto’s political home risks being undercut before it even takes off. And with national security cases like that of ex-MEP Nathan Gill resurfacing, he was jailed for accepting pro-Russia payments, the mood for tolerance has evaporated.

UK Wants Regulation, Not Revolution

The Elections Bill is expected to tighten several other financial screws too: shell company contributions, risk assessments for dodgy donors, and automatic voter registration are all on the table. Ministers are hoping to future-proof the system before another Gill or Gox scenario erupts.

Meanwhile, Reform UK insists it followed Electoral Commission procedures before accepting digital donations. But in the current climate, even being procedurally correct may not be enough to stay politically safe.

Crypto PACs Thrive in the US, Not in the UK

Across the Atlantic, crypto PACs threw $190 million into the 2024 elections. Britain, by contrast, has had fewer crypto donations than pubs in a dry village. Still, the government is not waiting for numbers to grow before acting. The concern is not just about volume, it’s about verification.

Our next YouTube stream will unpack the Reform UK connections, the legal mechanics, and what it tells us about broader crypto regulation in Britain.

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