A UK parliamentary committee has called for an immediate ban on political parties accepting cryptocurrency donations.

CoinFeed reported on March 18th that, according to Decrypt, the UK Parliament's Joint National Security Strategy Committee has called for an immediate ban on political parties accepting cryptocurrency donations, arguing that it poses an "unnecessary and unacceptable high risk" to the political finance system. The committee recommended including a binding ban in the People's Representatives Act until stronger safeguards are established. The report also calls for the establishment of a new political finance enforcement unit within the National Crime Agency and strengthened rules for overseas donors. Currently, Reform UK is the only major political party accepting cryptocurrency donations, having received £12 million from investors linked to Tether last year, prompting inquiries. Cybersecurity experts warn that a KYC-based ban could force political parties to centrally store personal data, creating "huge honeypots" for adversaries and introducing new cryptographic vulnerabilities.