UK’s Shift Towards Stricter Crypto Oversight: A Positive Sign for the Industry
According to Azariah Nukajam, head of UK compliance at crypto exchange Gemini, the UK’s recent budget, combined with ongoing regulatory reforms, indicates a clear shift towards stricter oversight of the digital assets sector. This move is expected to bring more transparency and accountability to the industry, which could ultimately benefit regulated platforms like Gemini.
Nukajam noted that recent developments, including the Draft Statutory Instrument (SI), the launch of the Cryptoassets Order in May 2025, and the upcoming CARF tax transparency regime, show that the UK is moving forward with a more traditional finance regulatory environment for crypto. This shift is seen as a positive sign for the industry, as it could help strengthen the long-term viability of cryptocurrencies as an alternative investment.
No Tax Hike: A Competitive Advantage for the UK
The budget confirmed that there will be no increases in tax rates for crypto transactions. Nukajam welcomed this decision, noting that treating cryptocurrencies like any other asset class helps strengthen their long-term viability as an alternative investment. Cryptocurrencies are currently subject to capital gains tax in the UK of between 18% and 24%, depending on an individual’s income bracket.
This gives the UK a competitive advantage over certain European countries, including Spain, where interest rates can be as high as 28%, and France, where lawmakers recently backed a measure that would classify high-value crypto holdings over €1.3 million as unproductive assets, regardless of whether profits were made. Nukajam argued that this favorable tax environment could incentivize long-term investments in the UK.
Regulators Focus on Compliance and Transparency
Despite unchanged tax rates, the direction of compliance is clear, said Nukajam. HMRC has increased the number of warning letters sent to people suspected of underpaying crypto taxes, while the upcoming CARF framework, expected in 2026, will significantly improve government transparency over crypto transactions. The government’s priority is to close tax loopholes and improve reporting and compliance standards across the crypto sector.
Nukajam added that a stronger regulatory framework could ultimately benefit regulated platforms like Gemini, as it could help them integrate into mainstream UK finance and build trust among both institutional and retail users. Creating this environment will ensure that regulated crypto firms like Gemini can position themselves as part of mainstream UK finance.
UK’s Ambition to Become a Global Crypto Hub
Nukajam noted that the UK still has the opportunity to establish itself as a leading jurisdiction for digital assets, provided it maintains favorable tax conditions and aligns regulatory approaches with those of other global markets. She also noted that Germany’s tax exemption for cryptocurrencies, which lasts longer than one year, is a policy the UK could consider to incentivize long-term investments.
As the UK continues to develop its regulatory framework, it is likely that we will see increased investment and innovation in the crypto sector. With its favorable tax environment and commitment to compliance and transparency, the UK is well-positioned to become a global hub for digital assets. For more information, visit https://cryptonews.com/news/gemini-exec-says-uk-budget-brings-tougher-crypto-oversight-but-no-tax-hike/
