The UK Electoral Commission is rewriting its rules on cryptocurrency gifts after Reform UK took one at the close of 2023. A new draft tells parties, treasurers and crypto firms how to handle such money, as the average crypto gift jumped to about $11 000 in 2024, up 386 % from the year before.
The old Political Parties, Elections and Referendums Act 2000 (PPERA) never mentioned digital coins, and the Commission now plugs that hole. Normal audit and price-check tools fail when the sender hides behind a code and the money hops across borders, and, as the Commission says “Digital cash has slipped into politics”, making donor names and clear prices urgent.
The draft rule turns wallet transfers into records an auditor can read. Parties must follow set steps when they take, price and also report a crypto gift, and treasurers plus crypto platforms will carry extra tasks.
Draft guidance and the PPERA gap
Compliance risks are increasing as both individuals and exchanges must now verify customer identities and track every coin to prevent illegal money from entering the system. At the same time, treasury teams face extra work — they need to assign a fixed value to crypto gifts that constantly change in price and report the amount in pounds.
Liquidity and adoption may slow down, since some participants could avoid using crypto until these new rules are fully in place. Public trust remains essential, and transparent records are designed to protect both users and exchanges from potential scandals. The real challenge is transforming secret digital transactions into clear, open records.
The Commission has started practical work on the new rule and wants both fresh ideas or tight control before crypto gifts grow even larger. If adopted, the guidance would give clearer steps for taking, pricing and reporting crypto donations.
