Prohibiting political donations in cryptocurrency: can the UK ensure election security without worries? Three major real loopholes cannot be concealed!

The UK government is brewing a ban on political donations in cryptocurrency, with the intention of safeguarding election security. This consideration is commendable, but in practical execution, it is likely to fall into the awkward situation of 'the ideal is full, but the reality is thin.'

The core bottom line of political donations is 'transparency and traceability,' while the anonymous nature of cryptocurrency directly contradicts this principle. Allowing it to flow into the political donation field is tantamount to leaving a 'backdoor' for foreign forces to interfere in elections. The incident of social media infiltration during the 2016 US elections may not be repeated. As a long-established democratic country, it is reasonable for the UK to prioritize election security, and issuing a ban can be seen as a proactive defense against potential risks.

However, the problem is that this 'ban line' may not be solidly established, and three major real loopholes cannot be ignored:

First, it is technically difficult to achieve a complete block. The anonymity technology of cryptocurrency is constantly iterating and upgrading, and regulatory agencies must continuously invest in upgrading monitoring methods, which could become prohibitively expensive over time; second, the industry may trigger a strong backlash. The UK is currently striving to attract cryptocurrency enterprises, and if regulatory policies are too strict, it could drive talent and capital to friendlier jurisdictions like Singapore and Switzerland; third, there is a lack of international coordination. Relying solely on unilateral actions by the UK cannot form a global regulatory norm and may instead leave itself passive in the formulation of rules in the cryptocurrency field.

Rather than a blanket ban, it is better to implement precise policies: for mainstream cryptocurrency varieties, require donors to complete real-name verification through compliant trading channels to ensure the traceability of funding sources; for cryptocurrencies with strong privacy attributes or decentralized platforms, explicitly prohibit them from being used for political donations while enhancing technical monitoring efforts; for political parties receiving relevant donations, mandate the public disclosure of collection addresses and all transaction records, accepting public supervision throughout.

As for certain political parties willing to accept cryptocurrency donations, it is more out of a need for political fundraising and ideological promotion, rather than a sincere support for the industry. $BTC #加密市场回调