Republic of Ireland to Prohibit Political Cryptocurrency Donations

The Irish government is preparing to ban political parties from accepting campaign donations in cryptocurrency. The move is aimed at blocking the perceived threat of Russian interference in the European country’s elections amid a clash between the West and Moscow over the war in Ukraine.

Ireland will limit foreign political support for its parties, including crypto donations

The executive branch in Dublin is drafting new political integrity rules to limit foreign political donations amid fears that Russia may try to influence the electoral process in Ireland. The stricter rules are designed to prohibit Irish parties from accepting donations through cryptocurrencies and require them to fully disclose their ownership.

A report in Ireland’s Independent newspaper describes the changes as a significant shake-up of the country’s election laws. The Electoral Commission will be given the power to issue election withdrawal notices to social media platforms and warn of attempts at online disinformation. Local Government Secretary Darragh O’Brien, who is spearheading the reform, said:

The terrifying invasion of Ukraine and the insidious disinformation war underscore the continuing fundamental threats facing all democracies.

O’Brien also reported that his colleagues have already agreed to the strict measures he proposes to protect “Ireland’s democratic system, given the growing threat of cyber warfare directed against free nations.” Amendments to the political finance laws to this effect will be included in the Electoral Reform Bill 2022.

The new Electoral Commission of Ireland, to be established by summer, would also have to impose rules for political advertising on the Internet, including requirements for parties to clearly state how the ads are funded and to which audiences they are aimed. Party leaders will have to declare that their political organizations adhere to the new rules.

The initiative to update Ireland’s political finance rules predates the Russian invasion of Ukraine. In January, Darragh O’Brien asked Attorney General Paul Gallagher to create a working group of legal experts and political scientists to examine the need for new election integrity laws. He cited “serious concerns” about the deteriorating security situation in Eastern Europe and the “well-documented escalation of cyber attacks on democracies.”

Meanwhile, cyberspace has become another battleground in Russia’s war with Ukraine, with both sides registering hacking attacks on government websites and databases. Both Kiev and Moscow have also turned their attention to cryptocurrencies: the Ukrainian government is collecting millions of dollars in cryptocurrency donations, while the Russian Federation is looking to use cryptoassets as a means to circumvent sanctions.

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