While countries like the United States explore cryptocurrencies as a new fundraising tool for campaigns, ministers in the United Kingdom are sounding the alarm, and one of them is calling for a ban on cryptocurrency donations due to concerns about traceability and foreign interference.
On Tuesday, Pat McFadden, Minister of the Cabinet Office, stated that he believed there were reasons to prohibit such donations, considering how difficult it is to track them.
McFadden addressed the issue after Labour Party member Liam Byrne asked him about banning fundraising with cryptocurrencies, saying that the UK must always keep its "legislation updated to ensure that the public can trust the funding of politics."
"Funding for democracy is often a controversial topic, but I think it is essential to know who is making the donation, whether it is properly registered, and what the good faith of that donation is. I believe it is a very important question that has been raised."
While cryptocurrency donations have gained momentum in the United States, where figures like US President Donald Trump have openly courted the digital asset sector, the UK's rejection reflects a growing divergence in how governments approach the intersection of cryptocurrencies and democracy.
