Lib Dems call for inquiry into Farage Bitcoin deal
BBCThe Liberal Democrats have called for the UK financial services regulator to investigate Nigel Farage's promotion of a £2m cryptocurrency purchase.
The Reform UK leader is a shareholder in the British Bitcoin company Stack and appeared in a promotional video to mark its latest investment.
The Lib Dems want the Financial Conduct Authority (FCA) to investigate whether his actions amount to "attempted interference in the cryptocurrency market" or "attempted market abuse".
A spokesman for Farage described the event as a "photo call" and said: "Mr Farage is embracing the 21st century. He bought the [£2m of] crypto on behalf of Stack and not personally".
Farage has put £215,000 into the company and owns 6.3% of its shares through his investment vehicle Thorn In The Side Ltd.
Labour has described Farage's involvement in the venture "a bid to line his own pockets".
The BBC has approached Stack for comment.
Bitcoin is a form of cryptocurrency or digital money. Cryptocurrencies do not have a physical form and are traded over a computer network.
In the promotional video to announce Stack's £2m Bitcoin purchase, Nigel Farage appeared alongside the company's chair Kwasi Kwarteng, who served as UK chancellor for 38 days during Liz Truss's premiership.
"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," Farage said in a press release.
Liberal Democrats deputy leader Daisy Cooper said: "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."
The US president has embraced cryptocurrencies, even hosting a crypto summit at the White House.
Cooper said: "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 said: "We will review the letter and respond directly."
Stack was co-founded by Paul Withers, who is also the owner of Direct Bullion, for which Farage is a brand ambassador.
The gold trading company has paid him £226,200 for promotional work, according to the MPs register of interests.
Labour Party chair Anna Turley said: "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 has said he will ban donations in cryptocurrency to UK political parties in response to a review of foreign financial interference.
The crypto assets recommendation is particularly relevant to Reform UK, which is currently the only party at Westminster known to have received donations in the digital currency.
Last May, Reform UK leader Nigel Farage announced his party would accept donations in Bitcoin.
In October last year, Farage said the party had already received a "couple" of crypto donations.
Reform UK's website says it does not accept anonymous donations and any donations above £500 are subject to checks.
In the UK, parties must check donations over £500 are from permissible sources, which include people listed on the UK electoral register.
A spokesman for Farage told the BBC that "all parties need donations to run campaigns" and "Labour taking money from the trade unions is just one example".
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