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 financial regulator to probe Nigel Farage’s advocacy for a £2m cryptocurrency investment. The Reform UK leader, who holds shares in British Bitcoin firm Stack, featured in a promotional video highlighting the company’s recent purchase. The party wants the Financial Conduct Authority (FCA) to assess if his actions could be seen as “attempted interference in the crypto market” or “potential market abuse.”

“Mr Farage is embracing the 21st century. He bought the [£2m of] crypto on behalf of Stack and not personally,” stated a spokesperson for Farage.

Farage has invested £215,000 in the company, giving him a 6.3% stake through his investment vehicle, Thorn In The Side Ltd. Labour criticized his involvement as “a bid to line his own pockets.” The BBC has sought Stack’s response to the allegations.

Cryptocurrencies, such as Bitcoin, are digital assets without physical form, traded via computer networks. In the video announcing Stack’s £2m Bitcoin acquisition, Farage appeared with the company’s chair, Kwasi Kwarteng, who briefly served as UK chancellor during Liz Truss’s tenure.

“I have long been one of the UK’s few political advocates for Bitcoin, recognizing its role in shaping future finance,” Farage said in a press release. Liberal Democrats deputy leader Daisy Cooper warned: “This raises concerns Nigel Farage might be using the Trump playbook to prioritize personal gain over public interest, possibly enticing others into risky schemes.”

“The FCA must investigate whether Farage’s plans to profit from crypto could signal market abuse or a conflict of interest,” Cooper added. “We cannot let political leaders treat financial markets as their personal piggy bank.”

An FCA spokesperson confirmed they would “review the letter and respond directly.” Stack was co-founded by Paul Withers, who also owns Direct Bullion. Farage acts as a brand ambassador for the gold trading firm, which paid him £226,200 in promotional fees, per the MPs interests register.

Labour Party chair Anna Turley accused Farage of “hype” around a former Tory chancellor linked to the economy’s recent crisis. “Reform UK is more focused on self-interest than supporting working people,” she said. “While Labour cleans up the mess left by the Tories, Farage is cozying up to the architect of Liz Truss’s disastrous mini-budget.”

Keir Starmer has pledged to ban crypto donations to UK parties to counter foreign financial influence. This policy aligns with Reform UK’s current position, as it is the only party at Westminster accepting digital currency contributions. Last May, Farage confirmed his party would accept Bitcoin donations. By October, he noted “a couple” of such contributions had already been received.

Reform UK’s website states it does not accept anonymous donations, requiring scrutiny for amounts over £500. In the UK, political parties must verify donations exceeding £500 from approved sources, including individuals registered on the electoral roll. A Farage representative argued: “All parties need donations to run campaigns. Labour taking money from trade unions is just one example.”