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 oversight body to probe Nigel Farage’s role in promoting a £2 million cryptocurrency investment. The Reform UK leader is a shareholder in the British Bitcoin firm Stack and featured in a promotional clip showcasing its recent crypto purchase. The party wants the Financial Conduct Authority (FCA) to assess whether his actions could constitute “attempted interference in the cryptocurrency market” or “market abuse.”
A spokesperson for Farage clarified 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.” Farage’s personal stake in the company includes £215,000 invested through his vehicle Thorn In The Side Ltd, granting him 6.3% ownership. Labour has criticized his involvement in the venture as “a bid to line his own pockets,” highlighting concerns about potential conflicts of interest.
FCA to review allegations
The FCA will examine the matter after receiving the Lib Dems’ request. In a press release, Farage emphasized his longstanding support for Bitcoin, noting its future significance in business and finance. Daisy Cooper, a Liberal Democrats deputy leader, accused him of adopting the “Donald Trump playbook” to prioritize personal gain over public benefit, warning of “high-risk schemes” that might mislead investors.
“We cannot allow political leaders to treat financial markets like a personal piggy bank,” Cooper stated, linking Farage’s actions to potential market abuse.
Stack, co-founded by Paul Withers, is also associated with Direct Bullion, where Farage serves as a brand ambassador. The MPs register of interests reveals that the gold trading company has paid him £226,200 for promotional work. Meanwhile, Reform UK’s website claims it does not accept anonymous donations, with amounts over £500 requiring verification.
Keir Starmer has proposed banning cryptocurrency donations to UK political parties, a move relevant to Reform UK, which is the only Westminster party known to have received such contributions. Last May, Farage announced his party would accept Bitcoin donations, and in October, he mentioned receiving “a couple” of crypto contributions. The UK’s regulations mandate checks for donations exceeding £500, sourced from permissible entities like those on the electoral register.
A Farage representative told the BBC that “all parties need donations to fund campaigns,” citing Labour’s union-backed funding as an example. The BBC has sought Stack’s comment on the matter. Bitcoin, a digital currency, operates without physical form, traded via decentralized networks. In the promotional video, Farage appeared with Stack’s chair Kwasi Kwarteng, who previously held the UK chancellor role during Liz Truss’s short tenure.
Labour’s chair, Anna Turley, condemned the partnership, noting that Farage was “hyping up a former Tory chancellor who crashed the economy.” She argued this aligns with Reform UK’s self-interest, contrasting it with Labour’s efforts to address economic issues left by the Conservatives. “It tells you everything you need to know about whose side he’s on,” Turley added.
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