Key Points
- Reform UK proposes a bill to reduce crypto tax and enable Bitcoin payments for taxes.
- Bank of England might consider incorporating Bitcoin into its strategic reserves.
The adoption of Bitcoin is gaining momentum across individuals, institutions, and even nation-states, with a renewed spark from Donald Trump’s political re-entry.
Bank of England’s Crypto Vision
Michael Saylor, co-founder of Strategy, recently hinted that the Bank of England might be considering the integration of Bitcoin into its strategic reserves. This speculation arose from Reform UK leader Nigel Farage’s statement at the Bitcoin 2025 conference in Las Vegas, indicating a possible shift in the UK’s central banking strategy towards embracing digital assets.
Reform UK is intensifying its pro-crypto stance with a bold legislative proposal, the Crypto Assets and Digital Finance Bill. The bill aims to cut capital gains tax on cryptocurrencies from 24% to just 10%. In addition, the party has become the first in the UK to accept crypto donations, reflecting a progressive attitude towards digital finance.
Proposed Legislation and Tax Reforms
Farage emphasized that the proposed legislation would also prevent banks from “debanking” individuals solely for engaging in crypto-related activity. Furthermore, Reform UK is advocating for a more crypto-friendly tax regime, proposing not only a reduction in capital gains tax on digital assets but also the option for citizens to pay taxes in Bitcoin. Party Chairman Zia Yusuf believes such tax reforms could help stem the outflow of high-net-worth individuals who currently migrate to jurisdictions with more favorable crypto tax policies.
The UK’s evolving stance on digital assets is further reflected in Finance Minister Rachel Reeves’ recent announcement to incorporate crypto firms under existing financial regulations. This move signals a shift towards regulatory alignment with the U.S., distancing from the EU’s approach. With around 12% of British adults owning cryptocurrencies like Bitcoin or Ethereum, a sharp uptick from just 4% in 2021, the UK appears poised to strengthen its position as a serious contender in the digital economy.
