In a statement to MPs, Housing Secretary Steve Reed said he accepted Rycroft’s assessment “that the anonymity inherent in crypto transactions could make it easier to mask the origin of donations and evade robust checks on the true source of funds”.

“The clear route that this creates for the illicit channelling of money into our politics is unacceptable and undermines public confidence in our electoral system,” Reed said.

He said the crypto donations ban would “remain in place until the Electoral Commission and this Parliament are satisfied there is sufficient regulation in place”.

Reed said the temporary ban would be applied retrospectively to crypto donations of “any amount” from today, once changes to legislation have been made.

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