The Liberal Democrats have formally requested that the UK's Financial Conduct Authority investigate Nigel Farage's involvement in promoting a £2 million cryptocurrency purchase, alleging potential market manipulation and conflicts of interest.
Reform UK leader Nigel Farage, who owns 6.3% of British Bitcoin company Stack through his investment vehicle Thorn In The Side Ltd, appeared in a promotional video alongside former Chancellor Kwasi Kwarteng to announce the company's substantial Bitcoin acquisition. The Liberal Democrats argue this activity warrants scrutiny for possible "attempted interference in the cryptocurrency market" or "attempted market abuse."
Liberal Democrats deputy leader Daisy Cooper expressed serious concerns, stating: "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."
Cooper continued: "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."
Farage's spokesperson defended the activity as a "photo call" and emphasized that "Mr Farage is embracing the 21st century. He bought the crypto on behalf of Stack and not personally." The Reform UK leader has invested £215,000 in the company.
The controversy extends beyond the Bitcoin promotion. Farage serves as a brand ambassador for Direct Bullion, a gold trading company that has paid him £226,200 for promotional work according to parliamentary records. Direct Bullion is owned by Paul Withers, who co-founded Stack.
Labour Party chair Anna Turley criticized Farage's business dealings, saying: "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."
In the promotional materials, Farage stated: "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."
The Financial Conduct Authority confirmed it would review the Liberal Democrats' letter, with a spokesperson stating: "We will review the letter and respond directly."
This development occurs against the backdrop of broader cryptocurrency regulation discussions. Labour leader Keir Starmer has pledged to ban cryptocurrency donations to political parties following a review of foreign financial interference. Reform UK currently stands as the only Westminster party known to accept Bitcoin donations, with Farage announcing last May that his party would welcome such contributions.
Reform UK maintains that it does not accept anonymous donations and subjects contributions over £500 to verification checks, as required by UK electoral law. A spokesperson for Farage noted that "all parties need donations to run campaigns" and pointed to Labour's union funding as a comparable example of political financing.