The UK government announced plans to ban cryptocurrency donations to political parties as part of broader reforms to political financing rules.

Ministers will also implement caps on donations from British citizens living abroad, according to government sources. The changes come following a comprehensive review of political donation regulations.

The move represents a significant shift in how political parties can raise funds, as cryptocurrency has emerged as an increasingly popular donation method in recent years. The ban will prevent parties from accepting Bitcoin, Ethereum, and other digital currencies as contributions.

The restrictions on overseas donations from British citizens abroad will limit the ability of expatriate voters to financially support UK political parties. Details on the specific caps and implementation timeline were not immediately disclosed.

The reforms appear designed to increase transparency and oversight in political financing, addressing concerns about the traceability and regulation of both cryptocurrency transactions and foreign-sourced funding in British politics.