- Reform UK released its Cryptoassets and Digital Finance Bill after leader Nigel Farage presented plans to support Bitcoin and reduce crypto taxes.
- The bill proposes a government bitcoin reserve, a lower capital gains tax rate for crypto, and acceptance of cryptocurrencies for tax payments and donations.
- The bill sets a 90-day deadline for government studies on cryptocurrencies.
- Tax experts have raised issues on donating crypto due to capital gains liabilities.
- The UK government and opposition parties maintain a cautious approach, citing concerns over volatility and regulatory stability.
Reform UK published its Cryptoassets and Digital Finance Bill following a speech by party leader Nigel Farage at Bitcoin 2025. The bill aims to support cryptocurrency use in the UK, including setting up a bitcoin reserve and reducing taxes on crypto activities.
The proposed legislation would allow people to use cryptocurrencies for paying taxes and making political donations. The capital gains tax on crypto would drop to 10%. The bill also mandates that the government conduct studies on crypto within 90 days, though extensions are possible.
The bill states that banks would not be able to deny services based on crypto transaction activity. Nigel Farage said during the event, “bring crypto in from the cold.” He also called Central Bank Digital Currencies, or CBDCs, the “ultimate form of tyranny,” pledging that such currencies would not be introduced if he wins.
Reform UK confirmed it would accept bitcoin and other cryptocurrencies for political donations. Some tax professionals flagged a possible issue, as donating crypto could lead to a capital gains tax if the asset increased in value before the donation. According to tax expert Dan Neidle, “if you buy some bitcoin for $2,500 and it’s worth $5,000 when you donate it, then you’re taxed on a $2,500 capital gain.” (read the full post here).
In contrast, the UK government and the Labour party have expressed less enthusiasm for cryptocurrencies. The Treasury stated that it does not plan to launch a bitcoin reserve, citing concerns about the price volatility of cryptocurrencies. The Treasury’s economic secretary said there are no plans to follow U.S. policies on national bitcoin reserves (source).
The UK’s Financial Conduct Authority has recently moved to relax restrictions on stablecoin issuers, allowing crypto firms to compete internationally (source). In April, Labour’s Rachel Reeves announced draft legislation to provide clear rules for crypto firms and support a “transatlantic Sandbox for digital securities” (details here).
Reform UK’s wider influence has prompted the government to toughen its stance on migration, after its strong performance in recent local elections (see more). The Home Office has recently highlighted deportations and police action, with Prime Minister Keir Starmer emphasizing new controls on migration (read details).
Protos has contacted Labour for comment and will update with any response.
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