- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Farage proposes a major crypto policy shift.
- Potential UK economic impact and global crypto influence.
Nigel Farage, leader of the Reform UK party, pledged to reduce cryptocurrency capital gains tax and create a Bitcoin reserve at the Bank of England, announced at Bitcoin 2025 in Las Vegas.
The event highlights the UK’s potential shift towards becoming a cryptocurrency hub, aiming to enhance its position in the global market while addressing crypto taxation concerns.
Farage announced a bold plan to cut the current capital gains tax on cryptocurrencies from 24% to 10%, citing projections of up to £1 billion in additional Treasury revenue over ten years. He also proposed establishing a Bitcoin reserve at the Bank of England, potentially positioning the UK as the third-largest sovereign Bitcoin holder globally.
Nigel Farage emphasized the necessity for reasonable taxes to ensure compliance, acknowledging that the UK already has approximately 61,245 BTC (about $6.4 billion) in reserves. He stated, “If taxes are reasonable, people will pay them” (source). His initiatives aim to safeguard crypto users from debanking and reject a central bank digital currency, reflecting a decisive pro-crypto stance.
The proposed tax cuts under Farage’s leadership could significantly increase cryptocurrency asset inflows, impacting the broader UK economy. His policies could stimulate economic activities within the crypto sector and encourage more significant investments in digital assets.
Global reactions to Farage’s policies remain varied, with some comparing the proposals to El Salvador’s crypto strategy. Experts speculate potential increases in market liquidity and the UK gaining a competitive edge in the global crypto landscape.
Farage’s declarations at the conference underscore a distinct shift in the UK’s approach to cryptocurrency, emphasizing economic potential and regulatory innovation. The ultimate outcomes hinge on successful policy implementation and the market’s adaptive response.
