British Cabinet Office Minister Pat McFadden has questioned the political donations made in Crypto. According to a Guardian report issued on July 18, 2025, McFadden, an intimate ally of British Prime Minister Kiel Starmer, said, “While democracy funding is often a controversial area, I think it’s very important to know who is providing donations.
🚫 British Cabinet Office Minister Pat McFadden has called for election officials to consider banning political donations made in digital currency. #crypto #UKhttps://t.co/qhoremm5hg
– cryptonews.com (@cryptones) July 18, 2025
Important discussions about crypto regulations have been cleaned up in both the UK and the US. In the US, President Donald Trump has announced that he will accept code donations. In fact, Thumzup Media Corporation, a Donald Trump JR-backed advertising technology startup, has secured board approval to hold up to $250 million in crypto. Meanwhile, the UK government is taking steps to “protect democracy.”
“Protection of democracy is one of the government’s most important duties. The increased risk that crypto donations, and crypto will be used to lead to British politics, is a clear and current danger to democratic integrity,” said Tom Brake, director of the Unlocked Democracy Campaign Group.
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Crypto companies collect user data from 2026, with large fines for false reports
The UK is implementing serial crypto reforms through HM Revenue and Customs (HMRC). The UK government has introduced another drastic regulatory move driven by the adoption of the Economic Co-operation and Development Organization (OECD) Crypto Asset Reporting Framework (CARF). Starting January 1, 2026, all cryptographic companies must collect and disclose detailed user and transactional data.
“If you are offering CryptoAsset services in the UK starting January 1, 2026, you will have a new responsibility to collect and report data. HMRC” said the May 14, 2025 announcement.
All CryptoAsset service providers (both domestic and foreign platforms that serve UK clients) are required to collect and report extensive information about all users and all transactions. This includes address, country of residence, national insurance number, unique taxpayer references, and more.
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It is set to prohibit Crypto purchases with credit cards and loans
If you are using a credit card to purchase Crypto in the UK, it may be numbered on that day. The Financial Conduct Authority (FCA) has officially proposed rules to prevent retail investors from using borrowed funds to purchase cryptocurrency. This includes credit cards, personal loans, and even loans from crypto-specific lenders. However, some crypto users are worried that the UK ban will block innovation and limit access to the market.
The move is part of a broader effort to protect consumers from acquiring debts that chase unstable digital assets. And as more people are jumping into the code with money they don’t actually have, the UK’s top financial watchdogs are ringing their alarms.
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Key takeout
British authorities consider Crypto’s pseudonymity to increase the risk of financing illegal campaigns and foreign interference.
The UK Financial Conduct Authority (FCA) has also proposed to ban cryptocurrency purchases made with borrowed funds such as credit cards and personal loans.
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