LONDON — The British government is considering a ban on cryptocurrency donations to political parties — in a move that could set off alarm bells in Nigel Farage’s Reform UK. Farage’s populist party — surging ahead in U.K. opinion polls — opened the door to digital asset donations earlier this year as part of a promised “crypto revolution” in Britain, and has already accepted its first donations in the digital assets. A clampdown by the British government was absent from a policy paper outlining its upcoming Elections Bill, which is being billed as a plan to shore up British democracy. But officials are now considering measures to outlaw the use of crypto to fund U.K. politicians, according to three people familiar with recent discussions on the bill. The government did not deny that the move was under consideration, saying it would “set out further details in our Elections Bill.” Reform UK became the first British political party to accept crypto donations earlier this year. Farage told Reuters in October that his party had received “a couple” of donations in the form of crypto assets after the Electoral Commission — which regulates U.K. political donations — confirmed it had been notified of the first crypto donation in British politics. Reform has set up its own crypto donations portal and promised “enhanced” controls to avoid any misuse. Reform has set up its own crypto donations portal and promised “enhanced” controls to avoid any misuse. | Dan Kitwood/Getty Images Farage, who holds some long-term crypto assets, has told the sector he is the “only hope” for Britain’s crypto business as he seeks to emulate his long-term ally U.S. President Donald Trump’s wide embrace of digital currencies. Farage has stressed he was “way before Trump” in publicly backing cryptocurrencies. HARD TO TRACK Despite the absence of a clampdown from initial public plans for the government’s elections bill — which included measures ranging from lowering the voting age to 16 to strengthened powers for the electoral commission — the British government, which is trailing Reform in the polls, has been under pressure to adopt a ban on the practice. Among those who have floated a clampdown are then-Cabinet Office Minister Pat McFadden, Business Select Committee Chair Liam Byrne, and Phil Brickell, the Labour MP who chairs the All-Party Parliamentary Group (APPG) on Anti-Corruption and Fair Tax. Transparency experts have warned that the source of cryptocurrency donations can be difficult to track. That raises concerns that foreign donations to political parties and candidates — banned in almost all circumstances under British law — as well as the proceeds of crime and money laundering could slip through the net. Labour’s elections bill is also expected to place new requirements on political parties and their donors. It is set to include a clampdown on donations from shell companies and unincorporated associations, and could force parties to record and keep a risk assessment of donations that could pose a risk of foreign interference. Crypto is an emerging battleground of foreign interference, with Russia and its intelligence services increasingly embracing digital currencies to evade sanctions and finance destabilization — such as in Moldovan elections — after being cut off from the global banking system following Moscow’s full-scale invasion of Ukraine. Russian involvement in British politics has come under fresh scrutiny in recent months after Nathan Gill — the former head of Reform in Wales who was also an MEP in Farage’s Brexit Party — was jailed last month for over 10 years after being paid to make pro-Russian statements in the European Parliament. Farage has strongly distanced himself from Gill, describing the former MEP as a “bad apple” who had betrayed him. Nevertheless, Labour has since gone on the offensive, with Prime Minister Keir Starmer urging Farage to launch an internal investigation into Gill’s activities. According to a spokesperson for the Ministry of Housing, Communities and Local Government, which has responsibility for the bill, “The political finance system we inherited has left our democracy vulnerable to foreign interference.  “Our tough new rules on political donations, as set out in our Elections Strategy, will protect U.K. elections while making sure parties can continue to fund themselves.”

SOFIA — The euro is more than just a currency: it’s a geopolitical insurance policy in a fragmenting world. That was the message the EU’s most senior economic leaders sent to a skeptical Bulgarian public during a pro-euro charm offensive in Sofia on Tuesday. Bulgaria is due to adopt the euro on Jan. 1, 2026, but only about half the population supports joining the single currency. Fears about inflation and centralization of power in Brussels and Frankfurt — exacerbated by alleged Russian disinformation campaigns — have turned many against the project. In a push to ease these concerns, Economy Commissioner Valdis Dombrovskis and European Central Bank President Christine Lagarde each stressed the geopolitical benefits of joining the euro. “Bulgaria is joining the euro … at a point when there is more volatility, at a time when we have more shocks, one after the other, compounded, and at a time where the global order, as we have known it, is more fragmented, and when friends are probably fewer,” said Lagarde, adding: “It’s important to close ranks and to be together.” Lagarde said that during the financial crisis, the single currency had proved a defensive shield against shocks and depreciation. Dombrovkis said that, in itself, the adoption of the euro could help Bulgaria compensate for growing geopolitical risks in investors’ eyes. “In Baltic countries, despite being geopolitically exposed, the borrowing costs were lower than in Poland, and to a large extent investors assessed that [the euro] is a stabilizing factor,” he said. Bulgaria’s accession to the euro has been planned for more than a decade, but as the date got nearer, it has spawned conspiracy theories and populist politics, alongside more justified concerns about the currency changeover. Investigative reports have identified Russian-funded social media campaigns to undermine support for the euro. Last April, the far-right party Revival, which arranged several anti-euro protests over the last year, signed a deal with Vladimir Putin’s Russia United. The percentage of Bulgarians who support the euro has slightly increased in the last few months. | Nikolay Doychinov/Getty Images Asked about Russian influence on public opinion about the euro, Dombrovskis said: “It is not a secret that Russia is waging a hybrid war against Europe and European member states. It is provocation, acts of sabotage, violation of European airspace, meddling in political processes in the European Union, also in other countries, and it is spreading disinformation.” The percentage of Bulgarians who support the euro has slightly increased in the last few months, reaching 51 percent according to a survey cited by Finance Minister Temenuzhka Petkova — up from 45 percent earlier in the year. European Stability Mechanism chief Pierre Gramegna highlighted risks coming from Washington’s new approach to monetary policy and cryptocurrencies: “The U.S. administration is changing its position on so many topics, including on finance and currency, that being part of a large bloc is a huge advantage,” he said, adding people in Bulgaria are not fully conscious of this. “The risk entailed in the digital currencies can be faced better if we are in the euro area,” he said.

BRUSSELS — Global finance regulators’ failure to impose sufficient rules on cryptocurrency could threaten the world’s financial stability, global risk body the Financial Stability Board has warned. Reviewing the rollout of a global framework for crypto rules, the FSB said there are “significant gaps and inconsistencies” in implementing the rules, which could “pose risks to financial stability and to the development of a resilient digital asset ecosystem.” On the regulation of stablecoins, which are virtual currencies pegged to real-world assets, the FSB said regulation is “lagging.” Because of the international, decentralized nature of financial technologies like crypto, having gaps in global rules is an issue as providers can go wherever the rules are the most lax, which “complicates oversight,” the review said. It added that global cooperation on regulating the currencies is “fragmented, inconsistent, and insufficient” to address their global nature. The FSB also flagged gaps in oversight of crypto service providers, saying supervision of “potentially higher risk activities, such as borrowing, lending, and margin trading, is often lacking” and enforcement can “lag behind regulatory development.” The review recommended that governments implement the global crypto framework fully. It also said they should “conduct an assessment of the scale and nature of cross-border crypto-asset activities into and out of their jurisdictions” at the “appropriate time.” Earlier this week, FSB chair Andrew Bailey warned G20 finance ministers and central bank governors that stablecoins are a potential area of vulnerability for the financial system.

The European Union needs to close a loophole in its legislation governing stablecoins or risk importing a major risk to financial stability, European Central Bank President Christine Lagarde said on Wednesday. In opening remarks to the European Systemic Risk Board’s annual conference, Lagarde urged legislators to improve its current regulation on digital currencies to address risks posed by so-called multi-issuance schemes, under which an EU entity and a non-EU entity jointly issue fungible stablecoins. “In the event of a run, investors would naturally prefer to redeem in the jurisdiction with the strongest safeguards, which is likely to be the EU,” Lagarde said. The EU’s Markets in Crypto-Assets Regulation (MiCAR) requires immediate and cost-free redemption at par, which is not the case in the United States. “But the reserves held in the EU may not be sufficient to meet such concentrated demand,” Lagarde cautioned, adding that new stablecoins create very familiar liquidity management risks. “That is why we must take concrete steps now,” Lagarde said. “European legislation should ensure that such schemes cannot operate in the EU unless supported by robust equivalence regimes in other jurisdictions and safeguards relating to the transfer of assets between the EU and non-EU entities … We know the dangers. And we do not need to wait for a crisis to prevent them.” Outsiders have also warned of the risks latent in the current setup. In a recent op-ed, London Business School Professor Richard Portes said: “This is like allowing depositors in a bank outside the bloc to redeem their deposits held in the third country through its EU subsidiary. This would mean the European supervisors of an EU subsidiary of a large global banking group would be responsible for the solvency and liquidity of the entire group.”

City leaders are getting cozy with Reform UK. Just don’t tell anyone.  Senior figures in banks, asset managers and other financial services businesses feel they can no longer ignore Nigel Farage’s U.K. populist party, which has maintained a strong lead in opinion polls for months.  The figures glimpse an opportunity to influence the young party, which — if those polls are to be believed — could be leading Britain in a few years’ time. Reform UK, set up by Farage in 2016, counts four MPs in Westminster. Its flagship policies include pledging to cap the number of migrants coming to the U.K. and implementing vast tax cuts. But other than strongly pro-crypto policies, the party hasn’t made its view on financial services clear, and the City sees the chance to influence a broadly blank slate as too tempting to ignore. Still, financial institutions, which are happy so far with what they’re getting from the Labour government, are cautious to admit they’re making a deal with the devil.  “When I’ve been speaking to people, they say ‘we’re really interested in what’s going on, but don’t tell anyone we asked’,” Farage’s former right-hand man Gawain Towler said.  This taboo against being seen as actively engaging with Reform UK, even while wanting to understand the party, seems to be permeating the City. Banks and asset managers attending Reform’s party conference at the start of next month are reluctant to actively speak about the matter.  One senior trade body executive, granted anonymity to speak freely, said they had already met one-on-one with a Reform MP months ago, as well as with some party officials on a separate occasion.  However, Reform has since postponed any meaningful conversations about policy until after the conference, they said.  “I was not sure whether I should go to [the] party conference, and then I heard that the big boys of the City are going,” the figure added. “The traditional finance people that I would have thought ‘well, maybe it’s premature’ … they are going.”  Those City types will be joined by scores of British businesses at the upcoming conference, which are also getting flirty with Farage’s party. REFORMING THE STATUS QUO  Along with its conference, Reform has been working to build the necessary ties with the financial industry. Farage and deputy leader Richard Tice have recently been attending various breakfasts with the business community, which often involve members of the City. Reform even poached John Gill, a policy and communications exec from City trade group UK Finance, to work on its external affairs team.  The rise of Reform isn’t without precedent. | Adam Vaughan/EPA “People like Farage and Richard Tice and others are intensely at ease in that community, because it’s essentially their people. Once the City have got over their squeamishness, they find that they get on with the people involved. But there is squeamishness,” Towler acknowledged.  The party even has the view that “the City is going to be in some ways easier” to win over than the broader business community, thanks to Farage’s existing relationships with the financial world, Towler added.  Reform has also taken a keen interest in cryptocurrencies, mirroring U.S. President Donald Trump — and making some parts of the City very happy. In May, Reform became the first party in Europe to accept political donations via Bitcoin and has proposed the creation of a new government reserve of digital currencies.  There have already been some issues between the party and broader financial institutions, however. Bank of England Governor Andrew Bailey lashed out at Farage in June after he proposed scrapping interest on the central bank’s reserves, while Tice has suggested that the Treasury should be allowed to contribute to the Bank’s interest rate decisions.  Banks especially are more cautious about engaging with the party. A saga around Farage having his account closed by private bank Coutts in 2023 due to his political views led to the resignations of two CEOs and to the party leader strongly condemning the wider banking industry for the practice.  “If you’re a high-street bank, the whole specter of debanking hasn’t really gone away,” admitted one Reform official, granted anonymity to speak freely. “That sort of issue was kind of ‘of the moment.’ It’s not something that Nigel is continuing to push on.”  Nevertheless, the party is expecting several banks to head to its conference next month, offering an opportunity to repair the relationship in the event of a general election win by Reform UK.  NOT EASY BEING GREEN  Still, the party’s strong anti-renewables stance is also making some across the City nervous, given the long-term plans of financial firms and the billions they have pumped into the sector.  Bernard Fairman, executive chair of FTSE 250 investment firm Foresight Group, said he was set to meet with Tice imminently, having previously met Rupert Lowe (who is no longer a member of the party and now sits as an independent MP).  “The reason I’m seeing [Tice] is he sent a letter out to people like me, saying you manage lots of renewable energy assets … we’re against that and we may not stand behind the contracts” that the government has already signed, Fairman said.   In addition, the one thing that markets hate is uncertainty. The rotating carousel of Reform MPs, coupled with the potential risks that come with a brand-new party set up only six years ago, means some feel more concern than opportunity.  “It is a risk in the background at the moment,” said Anna Rosenberg, head of geopolitics at Amundi. “There’s so many more pressing short-term issues that are here already.”  However, the rise of Reform isn’t without precedent. Similar political waves have occurred across Europe, without causing a complete fracturing between the government and the financial industry.  “The populist government in Italy has been a lot more pro-business and moderate than what was feared,” Rosenberg noted. “There is a real risk in these parties coming into power, but they face a lot more constraining factors than, say, in the U.S.”  “Once the squeamishness is got over, once they’ve just looked at the numbers and said come on, guys, we really need to get it, then I think they’ll find a very productive relationship,” Towler added.   “The quicker the institutions of the City wrap their head around that, the better for everybody, because we’re not going away.” 

Listen on * Spotify * Apple Music * Amazon Music Vom CEO-Posten ins Kabinett: Deutschlands erster Digitalminister Karsten Wildberger im Interview mit Gordon Repinski. Er verspricht die digitale Brieftasche für alle Bürger – und nennt einen konkreten Zeitplan, wann der Personalausweis aufs Handy kommt. Außerdem erklärt Wildberger seinen 4-Punkte-Plan zur Entbürokratisierung des Staates, warum er mehr Begeisterung für Künstliche Intelligenz in Deutschland fordert und und der Minister spricht über politische Botschaften, seinen Umgang mit dem Beamtenapparat und weshalb er Altersgrenzen für Social Media unterstützt. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski.

PARIS — France isn’t getting rid of cash, Justice Minister Gérald Darmanin clarified on Friday after telling lawmakers a day earlier that the move would help stop drug trafficking. In an interview with radio station RTL, Darmanin recognized that getting rid of banknotes was unpopular and that the government lacked the “political means” to take a move that would significantly affect the everyday lives of millions of people. Darmanin said a debate on the future of cash would require “a lengthy discussion with French people,” especially to address the concerns of small businesses and older citizens. The 42-year-old added that a presidential campaign — which he is already laying the groundwork for ahead of the 2027 contest — could be the right avenue for such a discussion. A 2023 senatorial report estimated that illegal drug trafficking in France is worth between €3.5 and €6 billion yearly, and that most of this revenue comes from “small daily purchases using small banknotes.” The French state only recovers a few million euros of that amount each year, Darmanin said, adding that other forms of payment —included cryptocurrency — are easier for investigators to track. The right-leaning justice minister, who spent years as interior minister before taking on his new role last December, has long advocated tough-on-crime policies. In the same RTL interview, he also backed the use of facial recognition technology in public spaces to identify individuals wanted by the police.

PARIS ― French Interior Minister Bruno Retailleau is organizing an emergency meeting with cryptocurrency entrepreneurs in the country to discuss their security after a brazen kidnapping attempt on Tuesday. “I will be bringing together at Beauvau [France’s interior ministry] the cryptocurrency entrepreneurs, there are a few in France, to work with them on their security, to make them aware of the risks, and to take together measures to protect them,” Retailleau said in an interview with French media Europe1/CNews Wednesday. On Tuesday, four people attempted to abduct a woman and her son off the street in broad daylight but were stopped thanks to the quick work of those nearby. Much of the ordeal, which took place in Paris’ 11th arrondissement, was caught on camera. French media reported that the victims were the daughter and grandson of the CEO of French cryptocurrency platform Paymium. Retailleau said this was the third case of an attempted or successful kidnapping involving the relatives of crypto bosses this year, and that all of them are likely linked. Ledger cofounder David Balland was abducted in January and the father of another crypto entrepreneur was kidnapped earlier this month. The kidnappers in both of those cases reportedly cut a finger off of their victims to obtain a ransom before releasing them a few days later. Retailleau said the assailants in the early May case also threatened to pierce their victim’s knee with a drill.

LONDON — A new HBO documentary identifies Canadian developer Peter Todd as Satoshi Nakamoto, the pseudonymous founder of cryptocurrency bitcoin. Cullen Hoback, the award-winning filmmaker behind the documentary, comes to the conclusion by stitching together old clues and new ones, and then confronting both Todd and Blockstream founder Adam Back, another key Satoshi suspect, with the evidence. “It seems like you had these deep insights into bitcoin at the time?” Hoback puts to Todd in the film’s finale. “Well, yeah, I’m Satoshi Nakamoto,” Todd replies. The admission, however, is not necessarily a smoking gun. Todd, who is a vocal backer of Ukraine and Israel on his X feed, is known to invoke the claim “I am Satoshi” as an expression of solidarity with the creator’s bid for privacy. In an email to CoinDesk prior to the documentary’s release, Todd reportedly denied he was the bitcoin creator: “Of course I’m not Satoshi,” he said. If Todd is widely accepted as bitcoin’s creator, the revelation would end more than a decade of speculation over the identity of a person whose work spawned a global, multibillion-dollar craze for digital currencies: a mania that has pushed back the frontiers of finance but also enabled widespread fraud and other illicit activities. Todd is not unknown to enthusiasts of the stateless money system. As a longstanding bitcoin core developer known for communicating publicly with “Satoshi” before his disappearance from crypto forums in 2010, his name has always carried weight in the community. But he was rarely considered a prime suspect. A 39-year-old graduate of Ontario College of Art and Design in Toronto, Todd would have been 23 when the famous bitcoin white paper that first laid out the vision for the decentralized money system was being completed. Todd previously told a podcast he was about 15 years old when he first started communicating with key crypto influencers, known as the cypherpunks. “In investigations like these, digital forensics can only take you so far; they’re like a compass,” Hoback told POLITICO before the documentary aired. “Real answers can only be found offline.” “Todd’s game theory is next level,” Hoback said. “Just consider, in the run-up to release: he’s in the trailer, there’s a multi-million dollar betting pool, hundreds of thousands of tweets about the film and I didn’t see anyone suggest this possibility. He’s a fucking genius.” The naming of Todd will be a blow to crypto-based prediction markets, which had until Monday identified the late Len Sassaman, an American information privacy advocate, as the favorite.