What happened?
Nigel Farage announced a pro-crypto platform that would cut capital gains tax on crypto to a flat 10%, create a Bank of England Bitcoin reserve funded with about £5 billion in seized crypto, and allow taxes to be paid in Bitcoin. He also pledged to ban banks from refusing crypto-related customers, block a central bank digital currency, and push the Crypto Assets and Digital Finance Bill through quickly if elected. Reform UK leads in some polls, but the first-past-the-post system and the next election timeline mean these plans face significant political hurdles before becoming law.
Who does this affect?
Crypto investors, exchanges, and startups could benefit from lower taxes, easier banking access, and clearer rules, while banks and asset managers would have to adjust to new regulations around services and stablecoin holdings. Regulators, the Bank of England and law enforcement would be directly involved in setting up any official Bitcoin reserve and handling seized assets. Ordinary taxpayers could see changes in how gains are taxed and the option to pay taxes in crypto, which would reshape reporting and payment systems.
Why does this matter?
For markets, a promise of a 10% crypto tax and a government Bitcoin reserve would likely boost demand and investor sentiment, potentially lifting crypto prices and encouraging more institutional activity in the UK. But the combination of political uncertainty, long timelines to implementation and possible regulatory pushback means volatility could spike on election or policy news. Because the US and EU are already racing to set crypto rules, the UK’s stance will affect capital flows—favorable rules could attract firms and talent, while restrictive or unclear policy could drive them elsewhere.