Reform UK leader Nigel Farage has unveiled ambitious cryptocurrency policies at the Bitcoin 2025 conference in Las Vegas, pledging to establish a national bitcoin reserve and slash capital gains taxes. The proposals aim to position Britain as a global crypto hub while addressing growing voter interest in digital asset reforms.
The hard-right party’s Crypto Assets and Digital Finance Bill would mandate the Bank of England to create a bitcoin digital reserve if Reform wins the next general election. Farage cited the UK’s existing 61,245 BTC holdings (worth $6.4 billion) as foundation for expansion, trailing only China and the United States in national crypto reserves.
Political analysts note the timing coincides with Reform’s surge to 29% in recent polls, overtaking both Labour and Conservatives. The party gained momentum after strong local election performances in May 2025.
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Bank of England Bitcoin Reserve Plan
Reform’s proposed legislation would require the Bank of England to maintain cryptocurrency reserves alongside traditional assets. Farage argued this would future-proof Britain’s financial system, stating: “We’re determined to position London as one of the leading trading hubs globally. We are completely serious about this.”
The UK’s current crypto holdings compared to other nations:
| Country | Bitcoin Holdings | USD Value |
|---|---|---|
| United States | 198,012 BTC | $20.7B |
| China | 190,000 BTC | $19.8B |
| United Kingdom | 61,245 BTC | $6.4B |
Radical Tax Reforms for Crypto Investors
Farage pledged to reduce capital gains tax on crypto assets from 24% to 10%, calling current rates “punitive and counterproductive.” The reform mirrors strategies adopted by crypto-friendly nations like Portugal and Switzerland:
- Current UK crypto CGT rate: 24%
- Proposed new rate: 10%
- Implementation timeline: First parliamentary session post-election
The tax cut forms part of broader measures to prevent crypto debanking, making it illegal for financial institutions to close accounts solely for cryptocurrency transactions. Payments firm Radom will handle Reform’s newly launched crypto donation system .
Political Gambit Targets Younger Voters
Reform became the first major European political party to accept cryptocurrency donations through its partnership with British fintech company Radom. The move has drawn both praise and scrutiny:
- Donations accepted in BTC, ETH, and stablecoins
- Identity verification required for contributions over £500
- Transaction monitoring through Chainalysis compliance tools
Critics like Southampton Business School’s Larisa Yarovaya warn crypto donations could enable “non-traditional actors to influence politics without proper oversight” . Reform counters that blockchain’s transparency features enhance accountability compared to fiat donations.
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The proposals could reshape Britain’s financial landscape, potentially attracting crypto firms fleeing stricter US regulations. Market analysts suggest the policies might pressure Rishi Sunak’s Conservatives to accelerate their own digital asset strategies ahead of the 2029 general election.
- Bitcoin Reserve
- A national treasury strategy where governments hold bitcoin as part of their monetary reserves, similar to gold or foreign currency holdings.
- Capital Gains Tax (CGT)
- A levy on profits from the sale of assets, including cryptocurrencies, calculated as the difference between purchase and sale prices.
- Debanking
- The practice of financial institutions closing customer accounts due to perceived risk factors, including cryptocurrency transactions.
- HMRC
- Her Majesty’s Revenue and Customs, the UK government department responsible for tax collection and enforcement.
