Lib Dems Seek FCA Investigation into Farage's Cryptocurrency Promotion
The Liberal Democrats have urged the UK financial services regulator to investigate Nigel Farage's involvement in promoting a £2 million cryptocurrency purchase.
Farage, leader of Reform UK, is a shareholder in the British Bitcoin company Stack and featured in a promotional video marking the company's latest investment.
The Lib Dems have called on the Financial Conduct Authority (FCA) to determine whether Farage's actions constitute "attempted interference in the cryptocurrency market" or "attempted market abuse".
A spokesman for Farage described the event as a "photo call" and stated:
"Mr Farage is embracing the 21st century. He bought the [£2m of] crypto on behalf of Stack and not personally".
Farage has invested £215,000 in the company and holds 6.3% of its shares through his investment vehicle Thorn In The Side Ltd.
Labour has criticised Farage's involvement, describing it as "a bid to line his own pockets".
The BBC has contacted both Stack and the FCA for comment.
Bitcoin is a form of cryptocurrency or digital money that lacks physical form and is traded over computer networks.
Promotional Video Features Farage and Former Chancellor Kwarteng
In the promotional video announcing Stack's £2 million Bitcoin purchase, Nigel Farage appeared alongside Kwasi Kwarteng, who was UK chancellor for 38 days during Liz Truss's premiership.
Farage stated in a press release:
"I have long been one of the UK's few political advocates for Bitcoin, recognising the role digital currencies will play in the future of business and finance."
Liberal Democrats Raise Concerns Over Potential Market Abuse
Liberal Democrats deputy leader Daisy Cooper expressed concerns about Farage's motivations, saying:
"This raises real concerns that Nigel Farage could be using the Donald Trump playbook to put his own financial interests above the public good, potentially luring people into high-risk schemes for his own gain."
She noted that former US President Donald Trump has embraced cryptocurrencies, including hosting a crypto summit at the White House.
Cooper added:
"The FCA must investigate whether Farage's plans to cash in on crypto could potentially amount to market abuse and a conflict of interest.
We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets."
An FCA spokesperson responded:
"We will review the letter and respond directly."
Farage’s Links to Gold Trading Company Direct Bullion
Stack was co-founded by Paul Withers, who also owns Direct Bullion, a gold trading company 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 Criticizes Farage’s Association with Former Chancellor
Labour Party chair Anna Turley stated:
"Nigel Farage is hyping up a former Tory chancellor who crashed the economy, in a bid to line his own pockets.
Reform are more interested in themselves than in standing up for working people.
While Labour is working to clear up the mess the Tories left, Nigel Farage is cosying up to the architect of Liz Truss's catastrophic mini-budget.
It tells you everything you need to know about whose side he's on."
Keir Starmer Proposes Ban on Cryptocurrency Donations to Political Parties
In response to a review of foreign financial interference, Labour leader Keir Starmer has proposed banning cryptocurrency donations to UK political parties.
This recommendation is particularly relevant to Reform UK, currently the only Westminster party known to have accepted donations in digital currency.
In May last year, Nigel Farage announced that Reform UK would accept Bitcoin donations.
By October, Farage stated the party had already received "a couple" of crypto donations.
Reform UK's website states it does not accept anonymous donations and that donations over £500 are subject to verification.
UK parties must verify that donations exceeding £500 come from permissible sources, including individuals listed on the UK electoral register.
A spokesman for Farage told the BBC:
"All parties need donations to run campaigns" and "Labour taking money from the trade unions is just one example."
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