Crypto: Uk Security Committee Chair Urges Temporary Ban On Crypto Political...

The Reform UK party was the first to accept crypto donations in May last year, with leader Nigel Farage announcing the group is accepting Bitcoin and other cryptocurrency contributions.

Matt Western, chair of the UK’s Joint Committee on the National Security Strategy, has urged the government to put a temporary halt on crypto donations to political parties, citing concerns over foreign interference.

In his Monday letter to Steve Reed, Secretary of State for Housing, Communities and Local Government, Western recommended adding a “temporary moratorium” on crypto donations to the upcoming Representation of the People Bill. The moratorium would be lifted once the Electoral Commission issues statutory guidance.

“We are concerned that foreign state intent to interfere in UK political finance may grow out to the next election,” Western said.

“As the security environment worsens and the UK’s military role in Europe grows, the value of influencing the UK’s political positions, for example on Ukraine, or US/EU relations, is likely to increase,” he added.

In January, a group of MPs who chair parliamentary committees — including Western — advocated for a full ban on crypto donations to be included in the Representation of the People Bill, warning that foreign states could use such payments to influence UK politics. However, the bill did not include a full ban when it was introduced to the House of Commons on Feb. 12.

Western argued that the Electoral Commission’s guidance should require political parties to use only crypto services registered with the Financial Conduct Authority, the UK’s financial services regulator.

Donations involving the prior use of mixers or that come from an unknown source should be prohibited, according to Western, and political parties that receive crypto should convert it to fiat within 48 hours of receipt.

The next general election in the UK must be held by Aug. 15, 2029. Meanwhile, the Representation of the People Bill is scheduled to have a second reading in the House of Commons on March 2.

Western’s letter also offers longer-term solutions, such as creating a national police force dedicated to overseeing political finance and combating foreign interference.

Source: CoinTelegraph