The lawmakers expressed concern that the pseudonymous nature of digital currencies allows hostile foreign states or malign groups to bypass existing regulations. They also warned that AI could further obscure the source of political funds, effectively lowering the cost of foreign interference by automating the process of hiding financial trails.
Byrne said that anonymous money has no place in British democracy and described the current legislative window as a vital moment to act.
“When technology makes foreign interference cheaper, faster and harder to trace, the answer isn’t an open door. We have to bolt the door shut,” Byrne said.
The lawmaker added that if the elections bill does not include a ban, he intends to move amendments to ensure one is implemented.
Government Response and ReviewsThe U.K. government has not yet committed to an outright ban, though officials say the matter remains under consideration. A review into foreign financial interference led by former senior civil servant Philip Rycroft is expected to conclude in March, but the backbenchers argue that the elections bill, expected later this month, provides a more immediate opportunity for reform.
Other signatories to the letter include Tan Dhesi, chairman of the Defence Committee; Florence Eshalomi, chairwoman of the Housing, Communities and Local Government Committee; Chi Onwurah, chairwoman of the Science, Innovation and Technology Committee; and Andy Slaughter, chairman of the Justice Committee.
FAQ Why are Labour MPs urging a ban on crypto donations? They warn that digital assets let foreign actors bypass U.K. election rules. What role does AI play in this concern? Lawmakers say AI makes hiding political funds cheaper and harder to trace. Which parties currently accept cryptocurrency in Britain? Only three parties do, with Reform UK the most prominent. Has the government committed to a ban yet? Ministers say it’s under review, but no outright ban has been confirmed.
