Lib Dems call for inquiry into Farage Bitcoin deal
Lib Dems call for inquiry into Farage Bitcoin deal
The Liberal Democrats have urged the UK’s financial regulator to examine Nigel Farage’s promotion of a £2 million cryptocurrency investment. The Reform UK leader, who holds shares in the British Bitcoin firm Stack, was featured in a promotional video celebrating the company’s latest venture. The inquiry seeks to determine if his actions could be classified as “attempted interference in the cryptocurrency market” or “attempted market abuse.”
A representative for Farage characterized the event as a “photo call,” stating, “Mr Farage is embracing the 21st century. He purchased the [£2 million] crypto on behalf of Stack, not personally.” The leader has invested £215,000 in the company, giving him 6.3% ownership through his investment vehicle, Thorn In The Side Ltd. Labour criticized this involvement as “a bid to line his own pockets,” suggesting Farage’s actions prioritize personal gain over public benefit.
The BBC has sought comment from Stack, the firm behind the investment. Bitcoin, a digital currency, operates without physical form and is traded via computer networks. In the promotional clip, Farage appeared alongside Stack’s chair Kwasi Kwarteng, who previously served as UK chancellor for 38 days during Liz Truss’s government.
“I have long been one of the UK’s few political advocates for Bitcoin, recognizing its potential role in shaping future business and finance,” Farage stated in a press release. Liberal Democrats deputy leader Daisy Cooper added, “This raises concerns that Nigel Farage might be using the Donald Trump playbook to advance his financial interests, possibly enticing people into risky schemes for personal benefit.”
FCA to review potential market abuse allegations
Critics argue that Farage’s ties to Stack could create a conflict of interest. The Financial Conduct Authority (FCA) has been tasked with assessing whether his involvement amounts to market abuse. An FCA spokesperson noted, “We will review the letter and respond directly.” Stack was co-founded by Paul Withers, who also owns Direct Bullion, for which Farage serves as a brand ambassador.
According to the MPs register of interests, Direct Bullion has paid Farage £226,200 for promotional work. Labour’s chair Anna Turley accused Farage of aligning with a former Tory chancellor who “crashed the economy,” calling it a move to benefit his own finances. “Reform are more interested in themselves than in supporting working people,” she remarked.
Keir Starmer has announced plans to restrict cryptocurrency donations to UK political parties, following a review of foreign financial influence. This proposal is especially relevant to Reform UK, the only party at Westminster known to accept crypto donations. Last May, Farage declared the party would welcome Bitcoin contributions, and in October, he confirmed a few had already been received.
Reform UK’s website states it does not accept anonymous donations, requiring transparency for amounts over £500. A Farage spokesperson argued, “All parties need donations to run campaigns. Labour taking money from trade unions is just one example,” highlighting the issue of funding sources in politics.
