A UK parliamentary committee has called for an immediate ban on political parties accepting cryptocurrency donations.

PANews reported on March 18 that, according to Decrypt, the UK Parliament's Joint National Security Strategy Committee has called for an immediate ban on political parties accepting cryptocurrency donations, arguing that it poses an "unnecessary and unacceptable high risk" to the political finance system. The committee recommended including a binding ban in the People's Representatives Act until stronger safeguards are established. The report also called for the establishment of a new political finance enforcement unit within the National Crime Agency and for strengthened rules regarding overseas donors.

Reform UK is currently the only major political party accepting crypto donations. Last year, it received £12 million from investors linked to Tether, prompting an investigation. Cybersecurity experts warn that a KYC-based ban could force parties to centrally store personal data, creating "huge honeypots" for adversaries and introducing new cryptographic vulnerabilities. The committee acknowledges that cryptographic tools can conceal the source of funds but believes current regulations are insufficient, leaving too many opportunities for rule circumvention.