Restore Britain Party Refunds Crypto Donations Amid Electoral Commission Concerns
A newly established political party led by former Reform UK MP Rupert Lowe has announced it has refunded donations received from a cryptocurrency project following concerns raised with the Electoral Commission.
Labour MP Phil Brickell has called on the Electoral Commission to investigate donations made to Restore Britain by the anonymous creators of the digital currency Britain Token.
The Electoral Commission stated it was reviewing the information but had not initiated a formal investigation.
A spokesperson for Restore Britain confirmed the party had
"already refunded every single penny received from this organisation, going above and beyond any necessary rules to ensure that we are fully compliant".
About Britain Token and Its Donations
Britain Token is a memecoin, a type of cryptocurrency, reportedly created in February 2024 by anonymous developers and investors.
According to its website, Britain Token claimed to have donated approximately £26,000 ($34,800) to Lowe's party.
The project asserts it is not affiliated with Restore Britain but supports the party's policies.
Currently, donations to UK political parties in cryptocurrency are not illegal. Reform UK leader Nigel Farage, an advocate of the crypto industry, has previously stated his party would welcome such donations.
However, in March 2024, the UK government announced plans to legislate a ban on cryptocurrency donations to political parties.
Communities Secretary Steve Reed explained the rationale behind the ban, stating
"the anonymity inherent in crypto transactions could make it easier to mask the origin of donations and evade robust checks on the true source of funds".
Restore Britain Party Background and Support
Restore Britain was launched as a political party in February 2024 and has received endorsement from American billionaire Elon Musk, a cryptocurrency enthusiast who had previously supported Nigel Farage.
The party advocates policies including low taxation, small government, and secure borders, pledging to
"deport all illegal migrants"if it attains power.
Despite its recent formation, Restore Britain is polling at 3% according to the latest YouGov survey.
Lowe has expressed his ambition to establish a
"national party", although the party will not be contesting next week's local elections except in his Great Yarmouth constituency.
Anonymous Investors and Donation Details
On its X (formerly Twitter) account, Britain Token stated that Lowe was
"working to put the British back in the place they deserve"and pledged to donate 100% of its earnings from investor fees to Restore Britain.
Developers of memecoins can earn fees from investors for every transaction involving their token.
The donations from Britain Token pre-date the UK government's announcement of the ban on cryptocurrency donations. Screenshots of receipts shared on social media indicate the donations were paid in British pounds.
Britain Token has not posted about donations on its X account since early March 2024.
The value of the Britain Token memecoin has since collapsed, and a new version of the cryptocurrency has been created on a different platform.
It remains unclear how proceeds from investments in the new version of the cryptocurrency will be utilized.
Concerns Raised by Labour MP Phil Brickell
In his letter to the Electoral Commission, Brickell noted that Britain Token
"does not appear to have any legal status or recognised existence, and therefore cannot constitute a permissible donor".
He added that the donations appear to have been converted into conventional currency before being processed through Restore Britain's online donation portal.
Brickell, who chairs the all-party Parliamentary group on Anti-Corruption and Responsible Tax, urged the Electoral Commission to investigate to
"confirm whether this fundraising arrangement is permissible, and take appropriate enforcement action if breaches have occurred".
Regulations on Political Donations in the UK
UK law requires political parties to verify that donations over £500 come from permissible sources, which include individuals listed on the UK electoral register and UK-registered companies.
The Electoral Commission mandates that parties must not accept anonymous donations or donations if the donor's identity cannot be established.
In response to Brickell's letter last week, the Electoral Commission stated:
"We will give this our full consideration, undertaking a review under our regulatory remit."
When contacted for comment this week, the watchdog told the BBC:
"This is not the subject of an investigation by the Commission."
Restore Britain's Response and Accusations
A spokesperson for Restore Britain accused the Electoral Commission of
"leaking supposed damaging information in order to smear us"and indicated the party would submit a complaint.
The spokesperson described the situation as
"an outrageous abuse by the 'impartial' regulator".
The Electoral Commission declined to comment on these accusations.
Attempts to obtain comments from Britain Token and associated X accounts were unsuccessful.
