The UK government has unveiled comprehensive new foreign donation rules that could significantly impact major funders of Reform UK, including cryptocurrency tycoons who have previously donated millions to Nigel Farage's party. Communities Secretary Steve Reed announced that the measures will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong. The new rules include a £100,000 donation limit for individuals coming to the UK from overseas, applicable for a year after their arrival. This cap could affect cryptocurrency magnates Christopher Harborne and Ben Delo, who have reportedly returned or plan to return to the UK after previously donating millions to Reform UK.
UK Labour MPs have proposed making a temporary ban on cryptocurrency donations to political parties permanent after Nigel Farage resigned amid investigations into multimillion-pound gifts linked to crypto industry figures. According to reports from The Guardian, members of the ruling Labour Party have tabled amendments to existing political donation rules that would permanently prohibit digital asset donations after a temporary moratorium introduced in March. Labour MP Liam Byrne, who chairs the business select committee, said the proposed changes are intended to strengthen safeguards against political influence from wealthy donors, arguing that the UK could not allow its existing protections to weaken further. The move comes as UK lawmakers are expected to consider amendments to the crypto donation measures next week. Byrne's amendment has already secured at least 20 signatures by midday on Thursday, indicating strong parliamentary support for the permanent ban.
The new rules specifically target significant crypto-related donations to Reform UK. Christopher Harborne, a Thailand-based crypto-billionaire, made a £3 million donation, the largest single contribution Reform UK received between January and March 2026, and has reportedly since registered to vote in the UK. Ben Delo, another cryptocurrency magnate who was based in Hong Kong but has now moved to the UK, donated £4 million to Reform in two £2 million sums in January and March. According to The Guardian, the donations under scrutiny include a gift valued at roughly $6.7 million from Harborne, along with staff, security, transport and accommodation provided by Cottrell, who has a previous U.S. wire fraud conviction and has been linked to crypto casino Tether.bet. The political fallout has triggered a by-election with major parties declining to field candidates, highlighting the ongoing controversy surrounding crypto-linked political funding.
Labour MPs are pushing for comprehensive reforms beyond the crypto ban, with multiple amendments being tabled to the Representation of the People Bill. Anneliese Dodds, a former Labour cabinet minister, has proposed reducing campaign spending limits by nearly a third from £34m to £24.4m, arguing that the current funding levels create an arms race in political campaigns. Yuan Yang, an Andy Burnham ally, is calling for limits on how much money parties can have when first established, following revelations that Rupert Lowe's far-right Restore Britain party started with £2.5m in the bank without proper declaration of funding sources. Additionally, Mark Sewards has proposed introducing checks on donations to assess whether there's a risk they're part of attempts by foreign countries to undermine British democracy. One proposal by Stella Creasy suggests a £100,000 cap on all individual donations, though this appears to have less support among colleagues than the other amendments.
The new measures extend beyond crypto donations to address broader election integrity concerns. Communities Secretary Steve Reed emphasized that the changes will include tougher assessment for company donations, now evaluated based on post-tax profits over the previous five years rather than solely on revenue. This aims to ensure only legitimate UK-linked businesses can make political contributions, preventing firms with high revenue but unclear operations from donating. Additionally, individuals running for election will be required to prove the legitimacy of any funding received before officially becoming a candidate, with donations exceeding £2,230 received prior to their formal candidacy needing declaration. These measures follow a review of political funding led by former top civil servant Philip Rycroft and are set to be incorporated into the Representation of the People Bill, which will undergo its final Commons stages on July 14 before proceeding to the House of Lords.
