Lawmakers in the United Kingdom have raised concerns about the use of cryptocurrency in political fundraising, with some calling for a complete ban.
The primary concern is that cryptocurrencies, such as Bitcoin
The Guardian reported on July 15 that Cabinet Office minister Pat McFadden said there is a strong case for stopping crypto donations altogether.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Odysee & LBRY? Is Decentralized YouTube Possible? (ANIMATED)
His comments followed Labour MP Liam Byrne’s question about whether the UK should take steps to prevent political parties from accepting digital currencies.
McFadden stated:
The funding of democracy is often a controversial area, but I think that it is very important that we know who is providing the donation, are they properly registered, what are the bona fides of that donation.
Both McFadden and Byrne stated that if cryptocurrencies are allowed to be used in politics, the National Crime Agency and Electoral Commission would need more support to track and investigate these kinds of donations. This includes verifying the source of the funds and ensuring they meet legal standards.
The issue gained more attention after Reform UK, the political party led by Nigel Farage, announced it would accept Bitcoin donations. The party claimed it was the first in the country to do so, which prompted renewed debate about whether such practices are appropriate.
Recently, local officials in Shenzhen issued a warning about fake investment opportunities linked to stablecoins and other cryptocurrencies. What did they say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
