Nigel Farage Proposes UK Bitcoin Reserve and Tax Cuts to Boost Crypto Industry
Nigel Farage, the leader of Reform UK, has announced plans to establish a UK Bitcoin reserve and slash crypto taxes if elected. Speaking at the Digital Asset Summit in London, Farage declared himself the “champion” of the crypto industry, pledging to reduce the capital gains tax on crypto investments from 24% to a flat 10%. This move aims to stimulate growth in the industry and make the UK a more attractive destination for crypto investors.
Farage’s proposed legislation would also mandate the Bank of England to establish a Bitcoin reserve using approximately £5 billion worth of Bitcoin currently held from seized criminal assets. Additionally, the Reform Party chief’s bill would allow British taxpayers to pay taxes directly in Bitcoin, with funds either converted to pounds or directed to the reserve fund. This approach mirrors the crypto-friendly agenda pursued by U.S. President Donald Trump, who has cultivated industry support and implemented favorable policies for the crypto sector.
Reform UK’s Crypto-Friendly Agenda
Reform UK has become the first major UK political party to accept crypto donations, currently receiving Bitcoin, Ethereum, Solana, and USD Coin through its website. The party’s leader, Nigel Farage, has also vowed to address the issue of “debanking,” where banks deny or withdraw services to customers based on lawful crypto-related activities. Farage connected this issue to his own experience, stating that he was refused an account by 10 banks, highlighting the need for a more crypto-friendly approach.
The proposed Crypto Assets and Digital Finance Bill would prohibit banks from denying or withdrawing services to customers based on lawful crypto-related activities. Additionally, the bill would establish a more favorable regulatory environment for the crypto industry, allowing it to grow and thrive in the UK. Farage characterized the Bank of England’s plans for a central bank digital currency as “the ultimate authoritarian nightmare” and vowed to “stop it overnight” should Reform win the next election.
Global Crypto Competition and UK Regulatory Environment
The UK’s regulatory environment is facing increasing pressure from global competitors, particularly the United States, which has implemented crypto-friendly policies under the Trump administration. The European Union has also established a unified regulatory framework for digital assets, creating incentives for UK policymakers to clarify their approach to crypto regulation. The Bank of England has announced plans to exempt its proposed stablecoin holding limits for crypto exchanges and other firms requiring large holdings for liquidity purposes.
Industry executives have warned that overly restrictive regulations in the UK will risk diverting business and talent to jurisdictions with more favorable crypto frameworks. The Financial Conduct Authority is expected to complete its consultation on whether crypto firms should face the same regulatory standards as traditional financial institutions by the end of the year, with implementation expected to begin in January 2026. As the UK navigates its regulatory environment, it is essential to consider the global crypto competition and the need for a more favorable approach to stimulate growth in the industry.
For more information on Nigel Farage’s proposal and the UK’s crypto regulatory environment, visit https://cryptonews.com/news/farage-pitches-himself-as-cryptos-champion-proposes-uk-bitcoin-reserve-and-tax-cuts/
