UK Cabinet Office minister Pat McFadden has questioned political donations made in crypto. According to a Guardian report published on 18 July 2025, McFadden, a close ally of UK Prime Minister Keir Starmer said, “The funding of democracy is often a controversial area but I think that it’s very important that we know who is providing the donation, are they properly registered, what are the bona fides of that donation.”
🚫 UK Cabinet Office Minister Pat McFadden has called for election officials to consider banning political donations made in digital currencies. #Crypto #UKhttps://t.co/qhoReMm5hG
— Cryptonews.com (@cryptonews) July 18, 2025
Critical debates on crypto regulation are sweeping across both the UK and the US. In the US, President Donald Trump announced accepting crypto donations. In fact, Thumzup Media Corporation – an advertising tech startup backed by Donald Trump Jr- just secured a board approval to hold up to $250 million in crypto. Meanwhile, the UK government is weighing steps to “safeguard democracy.”
Tom Brake, the director of Unlock Democracy campaign group and a former deputy leader of the Commons, said, “Safeguarding democracy is one of any government’s most important duties. Crypto donations, and the heightened risk of crypto being used to channel foreign money into UK politics, are a clear and present danger to democratic integrity.”
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Crypto Firms to Collect User Data from 2026, Hefty Fine for Misreporting
The UK has been introducing back-to-back crypto reforms through HM Revenue and Customs (HMRC). The UK government has introduced another sweeping regulatory move, driven by the adoption of the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework (CARF). Starting 1 January 2026, all crypto firms will have to collect and disclose detailed user and transaction data.
“From 1 January 2026 if you provide cryptoasset services in the UK, you’ll have new responsibilities for collecting data and reporting it to HMRC,” the 14 May 2025 announcement said.
All cryptoasset service providers – both domestic and foreign platforms serving UK clients – must collect and report extensive information on every user and every transaction. This will include address, country of residence, national insurance number, unique taxpayer reference, and more.
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UK Set to Ban Buying Crypto with Credit Cards and Loans
If you’ve been using your credit card to buy crypto in the UK, those days might be numbered. The Financial Conduct Authority (FCA) has officially proposed a rule that would stop retail investors from purchasing cryptocurrencies using borrowed funds. That includes credit cards, personal loans, and even loans from crypto-specific lenders. However, some crypto users worry that the UK ban will discourage innovation and limit market access.
The move is part of a broader effort to protect consumers from racking up debt chasing volatile digital assets. And with more people jumping into crypto using money they don’t actually have, the UK’s top financial watchdog is sounding the alarm.
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Key Takeaways
British authorities see crypto’s pseudonymity as a heightened risk for illicit campaign funding and foreign meddling.
The UK’s Financial Conduct Authority (FCA) has also proposed banning crypto purchases made with borrowed funds, including credit cards and personal loans.
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