UK Minister Advocates For Prohibition On Crypto Political Donations: States “Financing Democracy Is A Controversial Subject”

The UK Cabinet Office minister Pat McFadden has raised concerns regarding political donations received in crypto asset. As stated in a report by the Guardian dated 18 July 2025, McFadden, a close supporter of UK Prime Minister Keir Starmer, remarked, “Funding democracy is often a contentious issue, but it’s crucial that we understand who is providing the donation, whether they are correctly registered, and the legitimacy of that donation.”

UK Cabinet Office Minister Pat McFadden has urged election officials to consider a ban on political contributions made via digital currencies. #Crypto #UKhttps://t.co/qhoReMm5hG

— Cryptonews.com (@cryptonews) July 18, 2025

Intense discussions on digital currency compliance are taking place across the UK and the US. In the US, President Donald Trump has begun accepting crypto donations. Notably, Thumzup Media Corporation, an advertising technology firm supported by Donald Trump Jr., recently received board approval allowing up to $250 million in digital currency holdings. Meanwhile, the UK government is contemplating measures to “protect democracy.”

Tom Brake, the director of the Unlock Democracy campaign group and a former deputy leader of the Commons, stated, “Protecting democracy is one of the most essential responsibilities of any government. Donations in digital currency, coupled with the increased risk of foreign money influencing UK politics, pose a significant threat to democratic integrity.”

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Crypto Firms to Gather User Data Starting 2026, Substantial Penalties for Inaccuracies

The UK has been enacting a series of crypto reforms through HM Revenue and Customs (HMRC). The UK government has rolled out another extensive regulatory initiative, inspired by the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework (CARF). Effective 1 January 2026, all crypto asset firms will be required to gather and report detailed user and transaction information.

“Starting 1 January 2026, if you provide cryptoasset services in the UK, you will have new obligations to collect data and report it to HMRC,” the announcement on 14 May 2025 stated.

All cryptoasset service providers—both domestic and international platforms catering to UK clients—must gather and disclose comprehensive details on every user and every transaction. This will encompass address, country of residence, national insurance number, unique taxpayer reference, among others.

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UK Aims to Prohibit Crypto Purchases via Credit Cards and Loans

If you have been utilizing your credit card for crypto purchases in the UK, those options might soon be limited. The Financial Conduct Authority (FCA) has formally suggested a compliance that would prevent retail investors from buying cryptocurrencies using borrowed money. This includes credit cards, personal loans, and even financing from crypto-specific lenders. Nevertheless, some crypto enthusiasts are concerned that the UK prohibition could stifle innovation and restrict trading market access.

This initiative is part of a larger strategy to shield consumers from incurring debt while pursuing volatile digital assets. With an increasing number of individuals entering the crypto space using funds they do not actually possess, the leading financial authority in the UK is raising concerns.

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The post UK Minister Calls For Ban On Political Donations Made In Crypto: Says “Funding Of Democracy Is Controversial Area” appeared first on 99Bitcoins.