Ministers are expected to ban donations being made to political parties using cryptocurrencies in a crackdown on foreign interference in UK politics.
Former top civil servant Philip Rycroft is set to publish his review of how vulnerable British politics is to overseas influence, including via its funding streams.
Commissioned in December last year, the review followed a series of high-profile cases of attempts by foreign states to influence UK politics, including the jailing of Reform UK's former Welsh leader Nathan Gill for taking bribes to make pro-Russian statements.
Cryptocurrency donations are legal, but campaign groups such as Spotlight on Corruption and Transparency International have warned that the anonymity they provide could enable donations from foreign sources.
But few parties accept crypto donations, with Reform UK being the most prominent.
Earlier this month Nigel Farage said he was 'one of the UK's few political advocates for Bitcoin, recognising the role digital currencies will play in the future of business and finance'.
He took a £215,000 stake in a Bitcoin reserve business led by former chancellor Kwasi Kwarteng, as the Reform UK leader eyes the UK becoming a 'global hub' for cryptocurrencies.
Ahead of publication, Mr Rycroft said recent cases had shown the UK was 'not immune to foreign money and interference'.
He said: 'Foreign states are testing our political system in increasingly sophisticated ways, and this review identifies where our defences must be strengthened to keep elections secure and trusted.'
It comes amid concern that digital currencies could be used to hide where funding has come from.
Last month, Parliament's Joint Committee on the National Security Strategy (JCNSS) called for a 'temporary moratorium' on cryptocurrency donations.
The review is also expected to consider Beijing's attempts to influence British politics, four years after MI5 alleged that lawyer Christine Lee was engaged in 'political interference activities' targeting Parliament on behalf of the Chinese Communist Party.
Mr Rycroft's review will be provided to Communities Secretary Steve Reed and security minister Dan Jarvis, who chairs the Government's Defending Democracy Taskforce.
Its recommendations are expected to be incorporated into the Representation of the People Bill going through Parliament.