A British right-wing party has unveiled proposals to slash capital gains tax on crypto — and establish a “sovereign Bitcoin reserve fund.”
Reform U.K. is led by Nigel Farage, and has surged in popularity. Some opinion polls predict he would become prime minister if an election was held tomorrow.
The “Cryptoassets and Digital Finance Bill” aims to capitalize on the country’s departure from the European Union, and better serve the seven million people who currently invest in Bitcoin and other digital assets.
Reform argues that reducing capital gains tax would drive up revenues for the Treasury — and bring greater volumes of business to British shores.
It would become illegal for banks to deny or withdraw services because their customers use cryptocurrencies lawfully, with some Britons complaining they have been “debanked” in recent years.
The bill also calls for the taxman to accept payment in BTC — with funds then converted to pounds or directed to the Bitcoin reserve fund.
It’s certainly a radical proposal, with Farage brandishing his plans during a slickly produced video in Las Vegas, where the Bitcoin 2025 conference was held.
In the clip, he argues that previous governments have failed to take initiative — despite one in four people under 30 now owning it.
“America is leading the way in crypto and digital assets. What’s happening in the U.K? Nothing. The Labour and Conservative parties don’t even understand it.”
Reform says it’s also putting its money where its mouth is — by becoming the first political party in the U.K. to accept donations in Bitcoin and Ether.
Why Now?
Farage — who was once an aggressive campaigner to “save the pound” by preventing Britain from adopting the euro — is clearly attempting to take a leaf out of Donald Trump’s playbook.
The Republican’s pro-Bitcoin stance in the run-up to last year’s presidential election led to a groundswell in donations from crypto advocates.
Although the U.K. government currently owns more than 61,000 BTC — with a current market value of close to $6.5 billion — Labour has refused to create a Bitcoin reserve, arguing that this digital asset is much too volatile. But at the same time, it hasn’t sold off these coins in order to plug a “fiscal black hole.”
While Reform’s stance may entice a small number of crypto investors, others may find the party’s other policies a little difficult to stomach. And it’s unlikely that this is a burning campaign issue for most Britons still grappling with a cost of living crisis.
Questions have also been raised about whether Reform can afford to make all of these grand promises. Farage has also revealed he wants to increase the personal income tax allowance — allowing Britons to keep the first £20,000 they earn. But critics estimate this would cost up to £80bn, with current Prime Minister Sir Keir Starmer warning it could lead to an “economic meltdown.”
There’s another challenge standing in Farage’s way as he mounts an attempt to grab the keys to 10 Downing Street: electoral math.
The U.K. currently uses a system called “first past the post,” which means voters don’t directly select a prime minister. Instead, they vote for an MP in one of 650 constituencies. To form a government, Reform would need to secure a majority across all of these seats.
As the party found out during last year’s election, this is difficult to achieve. In the summer of 2024, it received 4.1 million votes but just five seats. By contrast, the Liberal Democrats — which attracted 3.5 million votes — won 72 seats.
There are signs that the tide is changing for Reform, especially following an impressive showing in this month’s local elections. As well as gaining control of 10 councils, it picked up another MP and as well as two new mayors.
And with deep-pocketed Bitcoiners starting to mobilize — and Coinbase’s Stand With Crypto campaign starting to make inroads in the U.K. — Nigel Farage could end up having a considerable amount of support in his corner.
Another election isn’t due to be held in Britain until 2029, and a lot can change over the next four years. Reform U.K. may be flavor of the month right now — but as the Financial Times recently warned, the party could end up peaking too early.
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