In brief
- The joint committee called crypto donations an “unnecessary and unacceptably high risk” and wants a binding moratorium written into the Representation of the People Bill.
- The report demands a new national Political Finance Enforcement Unit inside the National Crime Agency and tighter rules on overseas donors.
- An expert told Decrypt that KYC-based bans would create “a massive honeypot” for adversaries by forcing parties to centralize donor data.
A UK parliamentary committee has urged an immediate ban on crypto donations to political parties, but at least one industry expert warns the move could backfire, creating new cybersecurity risks even as lawmakers seek to curb foreign influence.
The warning comes as the Joint Committee on…
