Labour MPs Push Permanent Crypto Donation Ban After Farage Funding Row

TLDR

• Labour MPs push a permanent Crypto Donation ban after Farage row.

• Byrne leads calls to close digital currency political funding gaps.

  

• Dodds seeks lower campaign spending limits in election reforms.

• MPs also target new party funds and foreign influence risks.

• Funding scrutiny puts pressure on ministers before Commons debate.

Labour MPs plan to push a permanent Crypto Donation ban as political funding scrutiny grows around Reform UK. The move targets digital currency donations and wider campaign finance gaps. It also raises pressure on ministers before the bill returns.

Labour MPs Seek Stronger Political Funding Rules

MPs linked to the all-party anti-corruption group are gathering support for four amendments next week. They want ministers to strengthen the Representation of the People Bill. The proposals focus on Crypto Donation rules, campaign spending, party funding, and foreign influence checks.

Liam Byrne leads the call for a permanent Crypto Donation ban. The government currently backs a moratorium, but several Labour MPs want a full prohibition. They argue digital currencies create traceability risks and weaken donor checks.

Byrne’s amendment gained support after questions over Reform UK funding. Reports linked major donations and gifts to cryptocurrency figures Christopher Harborne and George Cottrell. Farage has denied wrongdoing, but the row has widened political pressure.

Spending Limits And Party Funds Face New Pressure

Anneliese Dodds has proposed lower campaign spending limits. Her amendment would cut the national limit from £34 million to £24.4 million. She argues campaign finance now risks becoming an arms race.

Yuan Yang has also tabled a separate amendment on new political parties. Her plan would limit how much money a party can hold at launch. The proposal follows scrutiny of parties starting with large funds before full donor disclosure.

Mark Sewards wants stronger checks on donations linked to possible foreign interference. His amendment would require an assessment of risks before parties accept certain funds. Together, the measures expand the debate beyond the Crypto Donation issue.

Farage Funding Row Drives Reform Debate

The controversy around Reform UK has sharpened Labour pressure on ministers. Reports said bankers flagged several transactions linked to donors for review by the National Crime Agency. Some reports raised questions about the true source of funds.

Farage said he did nothing wrong and framed the issue as political pressure. He also triggered a by-election in Clacton and said voters should judge his conduct. Major rival parties have reportedly avoided standing candidates in that contest.

Ministers have already proposed changes to the elections bill. One measure would cap donations from returning expatriates at £100,000 for one year. Labour rebels say the package does not go far enough.

The Crypto Donation proposal now sits at the centre of the funding debate. Supporters say permanent rules would close a fast-growing loophole. Opponents may argue existing donor checks can cover digital assets.

The Ministry of Housing, Communities and Local Government said it will keep reviewing ways to strengthen the bill. The Commons will examine the package when the bill returns on 14 July. The Crypto Donation fight now tests how far Labour wants to reshape political finance.

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