Phil Brickell

Cryptocurrency donations into our politics should be banned completely. I am no luddite. I recognise that there may be some value to cryptoassets in certain circumstances, but they are inherently high risk. In my opinion, neither the Electoral Commission nor political parties themselves will ever be able to keep up with that risk. Crypto is designed for anonymity, speed, cross-border movement and weak oversight, and Reform has chosen to host its cryptocurrency payment provider not in the UK, but in Poland, away from the prying eyes of the Financial Conduct Authority.

On political donations, the Government’s July elections policy statement set out important measures to limit foreign interference. That work is welcome, but we must go further. As a former financial crime compliance officer, let me be crystal clear: we should ban cryptocurrency donations outright. Crypto is the perfect vehicle for covert foreign funding—fast, opaque and hard to trace. In my mind, there is no democratic justification for allowing it. It is a solution in search of a problem. There is only one reason why political parties would encourage donations in crypto: to conceal their origin.

I refer Members to recent reporting that Reform UK—I notice it is unrepresented in the Chamber today—became the first party to start taking such donations. I have recently returned from a visit to Montenegro with the Foreign Affairs Committee. Our focus has been on looking at misinformation and disinformation, and how it is spread like a cancer by those who wish to undermine our institutions. While there, several local politicians and officials raised with me their concerns about British national George Cottrell, a well-known figure in the crypto world.

I have additional concerns about the Electoral Commission’s capacity to keep up with cryptocurrency donations, which Reform has reportedly already begun accepting. Indeed, the crypto platform Zebec sponsored a panel at Reform’s party conference on “Strengthening the Rule of Law: legislative reform?”. Zebec is, unsurprisingly, ultimately controlled by an entity registered in the British Virgin Islands, as reported by The Observer. Protecting our democracy from foreign interference is made all the more difficult by crypto firms involving themselves in our politics while hiding behind the veil of corporate secrecy, enabled by our overseas territories.