The UK has pushed forward a fresh clampdown on foreign money in politics — and the changes could hit some of Reform UK’s biggest backers in the crypto world.
What’s changing
- The government has extended the existing £100,000 cap on overseas donations so it also applies to a donor’s first year of UK residency. In short: relocating to Britain can no longer be used to immediately make larger political gifts.
- Company donations will be assessed against post-tax profits averaged over five years instead of revenue, a move designed to exclude shelly firms with high turnover but low real profits.
- Candidates will be required to prove any pre-campaign funding came from “legitimate sources.”
- These measures build on a March package that already capped overseas donations and banned crypto donations until a regulatory regime is in place. At the time of that ban, Reform UK was the only major British party accepting crypto donations.
Why crypto donors may feel the squeeze
The residency rule could particularly affect wealthy crypto backers of Reform UK:
- Christopher Harborne — Thailand-based donor reported to hold a 12% stake in stablecoin issuer Tether — has given about £12 million to Reform UK and has since registered to vote in the UK.
- Ben Delo — Hong Kong-based BitMEX co-founder — has donated roughly £4 million. Delo, who was pardoned by U.S. President Donald Trump in 2025 after pleading guilty to Bank Secrecy Act violations, has said he intends to move back to Britain. Under the new rule, his first year as a UK resident would leave him capped at £100,000 in donations.
- Neither Harborne nor Delo’s gifts were made in cryptocurrency, and Reform UK says the donations complied with the rules in force at the time.
Political fallout and fresh allegations
The crackdown lands amid renewed scrutiny of Nigel Farage and Reform UK following a Sunday Times investigation alleging Farage failed to declare years of “in-kind” support — from staff and security to housing — provided by George Cottrell (aka “Posh George”), a longtime associate described by the paper as a convicted fraudster and crypto gambler. Key points:
- Cottrell pleaded guilty to wire fraud in the U.S. after a 2016 sting and is seeking a pardon from President Trump, the report says.
- The Sunday Times says Cottrell became a “key player” in Tether.bet, an offshore casino that took cash or crypto bets and operated without a UK licence.
- Blockchain investigator ZachXBT has linked a Polymarket account to Cottrell that reportedly staked millions on geopolitical bets.
- Liberal Democrat MP Josh Babarinde has asked the Parliamentary Standards Commissioner to investigate Farage’s alleged failure to declare financial support from Cottrell. Farage, who is already under investigation over an undeclared £5 million gift from Harborne, denies that the Cottrell support required declaration; Cottrell also denies expecting anything in return.
What’s next
The bill returns to the House of Commons for final stages next week. Publications and parties involved have been contacted for comment; Nigel Farage has been approached for a response.
Bottom line: the new rules tighten the window and metrics for big political donations, change how corporate giving is evaluated, and — combined with ongoing reporting and probes — put a brighter spotlight on crypto-linked donors and intermediaries supporting UK politics.
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