Britain plans cap on foreign political donations

Following an independent review, the British government plans to introduce a cap on political donations from donors living abroad and to ban contributions in cryptocurrencies. The measures respond to concerns about foreign interference in politics.

The government commissioned the review after the case of a former politician linked to the Reform UK party who was jailed for accepting bribes in exchange for pro-Russian statements.

Under the new rules, Britons living abroad will be allowed to donate a maximum of €115,000 a year to political parties. The proposals also impose a moratorium on cryptocurrency donations until a regulatory system is in place. The government said the aim is to curb the flow of illicit funds into politics.

A report by former senior official Philip Rycroft notes that the threat of foreign financial interference is real and long-standing. It points to the activities of countries such as Russia, China and Iran, as well as potential risks from private individuals or allied states.

The review also recommends setting up a dedicated police unit to investigate such cases, lowering the burden of proof for criminal offences and tightening sanctions.

Reform UK, led by Nigel Farage, is currently ahead of the ruling Labour Party in the polls and last year raised more money than its rivals.

In the past, the party has accepted donations in Bitcoin and received significant funding from abroad, meaning it could be hit hard by the measures.

(reuters, max)