UK (Parliament Politics Magazine) – The Electoral Commission faces calls to probe Reform UK’s £9m crypto donation over Nigel Farage’s alleged misuse of his parliamentary role.
As reported by The Independent, Reform UK’s cryptocurrency contributions are under scrutiny as the Electoral Commission investigates claims that Nigel Farage may have misused his role as an MP.
What did the Liberal Democrats say to the Electoral Commission about Reform UK’s £9m donation?
The Liberal Democrats have called for an inquiry after the Electoral Commission’s quarterly report revealed that Thai crypto billionaire Christopher Harborne donated £9m to Reform UK, marking the largest political gift from a living individual.
In a letter to the Electoral Commission, the party warned that a potential conflict of interest could erode public confidence in the political system.
Lisa Smith, the Lib Dems’ shadow spokesperson for the Cabinet Office, wrote in a letter to the commission,
“The sequence of events raises serious questions about whether the public promotion of Tether by the party leader may have been connected to, influenced by, or otherwise associated with this substantial financial contribution.”
She said,
“It also raises the question of whether any private commitments were made to give Tether a central role in the ‘Crypto Revolution’ that Nigel Farage has committed his party to delivering if they take power.”
Ms Smith added,
“Even the perception of a link between political advocacy and major corporate donations risks undermining public trust in the integrity of our political system.”
She went on,
“There is also a strong case, in the public interest, for Mr Farage to declare if any donations were received in the form of cryptocurrency. There is a disturbing possibility that Reform was in possession of Tether when Mr Farage promoted the coin – which would be an abuse of his public position and role as a member of Parliament.”
What did Anna Turley say about Nigel Farage’s crypto donations?
Labour’s chair Anna Turley has also urged a probe, saying, “Nigel Farage has some serious questions to answer.”
She said,
“After boasting about taking crypto donations and putting on a front for big crypto firms – it appears nothing has been declared.”
Ms Turley added,
“Farage needs to urgently come clean and clarify whether Reform have misled the public or if they have misled the Electoral Commission. He should provide a detailed account of who is funding him, to assure the public there’s been no wrongdoing here.”
What did the Electoral Commission say about crypto donations to political parties?
The Electoral Commission said no party has reported receiving crypto donations and reminded all political groups to declare assets from 1 October ahead of January’s deadline.
The spokesperson said,
“No political party has reported any donations that they have identified as cryptocurrency. Donations in crypto assets would be reported by political parties as ‘non-monetary’ donations. As with all non-monetary donations, details regarding the nature of the donation would be available to view in the donation details on our political finance database.”
They added,
“Donations must be valued in British pounds (GBP) at the time of receipt of the donation. The value in GBP is the market value of the crypto asset, for example the exchange rate of the payment provider, or if unavailable the exchange rate on a major exchange at the time of receipt.”
How has Nigel Farage advanced cryptocurrency in British politics?
On 29 May, Nigel Farage declared Reform UK the first British political party to accept cryptocurrency donations, following US President Donald Trump’s campaign in Britain.
Christopher Harborne’s donation arrived on 1 August. A month later, Farage referenced Tether and Bitfinex, in which Harborne holds shares, during an LBC interview while announcing plans to meet the Bank of England to oppose crypto regulations.
He told Nick Ferrari,
“We should hang on to this and wait till they mature – and secondly, Nick, I’m going to go tomorrow to say this, you know, Tether is a stable coin. Stable coins are the way which money goes from conventional currencies through into cryptocurrencies and back again. Tether is about to be valued as a $500bn company.”
Mr Farage added,
“You know, stable coins, crypto – this world is enormous and I’ve been urging for years that London should embrace it.”
Speaking to Reuters on 22 October, the Reform UK leader revealed the party had received some cryptocurrency donations but declined to provide specific details.
Since May, Mr Farage has promoted cryptocurrency, telling the Bitcoin Conference that Reform UK plans a “crypto revolution” and will introduce a Crypto Assets and Digital Finance Bill.
On 3 November, speaking in London’s financial district, Mr Farage called for relaxed cryptocurrency regulations.
He said,
“Secondary lending is exploding and could come back to bite us. We’ve ignored the burgeoning global markets in digital assets, stablecoins and crypto. The City succeeded by innovating and taking risks; we’ve done none of it. We should lead in these 21st-century sectors.”
Reform UK has not responded to the source, amount, or type of crypto donations, and the party has yet to clarify its Tether holdings.
At a Thursday press conference, Mr Farage said Mr Harborne sought nothing in return for his donation.
He added,
“Does he want anything in return for his money? I promise you absolutely nothing. Do I speak to him regularly? Maybe once a month, maybe once every six weeks, but certainly not more than that.”
When asked about Reform’s checks on the donation, Mr Farage said he was “very confident about the source of Mr Harborne’s funds.”
Is it allowed for UK political parties to receive donations in cryptocurrency?
Cryptocurrency is legally recognized as property in the UK, and the Electoral Commission provides guidance treating crypto donations as “non-monetary” contributions. The law requires parties to perform “permissibility checks” on donors and declare the donation’s value in British pounds at the time of receipt.
The current government has announced its plans to legislate a ban on cryptocurrency donations to political parties, citing risks to electoral integrity and difficulties in tracing the true source of funds.
Reform UK is the only major party known to have set up a system to accept crypto donations. However, its crypto-related funding is under investigation following a record £9 million donation from a crypto billionaire.
