UK Labour proposes permanent crypto donation ban

Labour MPs are pushing to make a temporary ban on cryptocurrency political donations permanent, weeks after Nigel Farage resigned amid investigations into gifts worth millions tied to crypto industry figures.

The Guardian reported Thursday that Labour members tabled amendments to existing donation rules that would permanently prohibit digital asset contributions. A temporary moratorium was introduced in March.

Liam Byrne, the Labour MP who chairs the business select committee, said the changes strengthen protections against wealthy donors. He argued that the UK cannot let existing safeguards weaken, pointing to a growing political and media network backed by large sums.

The proposed amendments are expected to be considered next week.

Farage stepped down as the Clacton MP earlier this week after the parliamentary standards commissioner began investigating gifts from crypto billionaire Christopher Harborne and longtime adviser George Cottrell.

During an X livestream Tuesday, Farage said: "I have done nothing wrong." He announced he would contest the resulting by-election, arguing that voters should decide whether he continues to represent them. According to Farage, Harborne's multimillion-pound payment was an unconditional personal gift for security costs after threats.

The Guardian said the gifts under scrutiny include roughly $6.7 million from Harborne, plus staff, security, transport, and accommodation from Cottrell, who has a U.S. wire fraud conviction and ties to crypto casino Tether.bet. The Sunday Times earlier reported that Farage did not publicly declare much of the support from Cottrell. Farage rejected that, saying the benefits came before he entered Parliament in 2024 and thus fell outside disclosure rules.

The by-election was triggered automatically. Labour, the Conservatives, the Liberal Democrats, and the Green Party are not expected to field candidates. Prime Minister Keir Starmer called Farage's resignation a "desperate stunt."

Separately, Labour has begun selecting a successor to Starmer, who resigned as prime minister. The Guardian reported that Andy Burnham, who returned to Parliament after winning the Makerfield by-election, is expected to become Labour's next leader if he secures enough MP nominations. As mayor of Greater Manchester, Burnham previously backed plans to make the city a "Web3 powerhouse" and supported digital technology for economic development. His leadership could influence future decisions on the crypto donation ban and the Financial Conduct Authority's oversight of the UK's digital asset sector.