Nigel Farage, leader of Reform UK, announced at the Bitcoin 2025 conference in Las Vegas on May 29, 2025, that his party has drafted a Crypto Assets and Digital Finance Bill, which includes a proposal for a Strategic Bitcoin Reserve to be held by the Bank of England. The bill aims to position the UK as a global crypto hub and includes measures such as:
Reducing capital gains tax on crypto assets from 24% to 10%. Prohibiting banks from “debanking” customers for engaging in legal cryptocurrency transactions. Establishing a Bitcoin digital reserve within the Bank of England. Opposing the introduction of a central bank digital currency (CBDC). Farage emphasized that the bill would be a key campaign priority for Reform UK in the next general election, expected by August 2029. He stated that the party’s goal is to “launch a crypto revolution” in the UK and make London a major global trading center for digital assets.
Reform UK has also become the first UK political party to accept donations in Bitcoin and other cryptocurrencies, facilitated through the crypto payments provider Radom. However, the UK Treasury has explicitly stated it has no plans to adopt a strategic Bitcoin reserve, focusing instead on a phased approach to crypto regulation prioritizing consumer protection and financial stability. The UK already holds 61,245 BTC ($6.4 billion), making it the third-largest sovereign holder of Bitcoin globally, behind the U.S. and China, according to Bitcoin Treasuries data.
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Farage’s proposal has drawn mixed reactions. Supporters, particularly in the crypto community, praise the move as a step toward mainstream adoption, while critics, including Prime Minister and Labour leader Keir Starmer, have likened it to economically risky policies, comparing it to former PM Liz Truss’s approach. Reform UK currently holds only five seats in the House of Commons, compared to Labour’s 403 and the Conservatives’ 120, making the bill’s passage uncertain without significant political shifts.
The announcement aligns with Farage’s broader narrative of promoting individual sovereignty and resisting centralized financial control, drawing parallels to his Brexit advocacy and citing his 2023 debanking experience as a motivation. The proposed Crypto Assets and Digital Finance Bill by Nigel Farage and Reform UK, including a Strategic Bitcoin Reserve, could have significant implications for the UK’s economy, financial system, and global standing in the crypto space.
Holding Bitcoin as a strategic reserve could hedge against fiat currency inflation and diversify the UK’s financial assets, especially if Bitcoin’s value continues to rise (currently ~$105,664 per BTC). The UK’s existing 61,245 BTC ($6.4 billion) could appreciate, strengthening national reserves. Bitcoin’s volatility poses risks to fiscal stability. A price crash could devalue the reserve, drawing criticism for speculative investment with public funds. The Treasury’s opposition suggests concerns about financial prudence.
Tax Reduction on Crypto Gains
Reducing capital gains tax from 24% to 10% could incentivize crypto investment, attract high-net-worth individuals, and stimulate economic activity in the digital asset sector. However, it may reduce tax revenue in the short term, potentially straining public finances unless offset by increased economic activity. Positioning London as a global crypto trading center could attract blockchain startups, talent, and investment, boosting the UK’s fintech sector. This aligns with post-Brexit goals to enhance financial competitiveness.
Risks include regulatory challenges, as loose oversight could invite fraud or money laundering, while strict rules might deter innovation. Prohibiting banks from debanking crypto users could encourage adoption but might expose financial institutions to risks from unregulated or illicit crypto activities, potentially clashing with anti-money laundering (AML) regulations.
The bill is a bold move to differentiate Reform UK from Labour and the Conservatives, appealing to younger, tech-savvy voters and the growing crypto community. Accepting Bitcoin donations reinforces this branding. With only five MPs, Reform UK’s ability to pass the bill is limited unless they gain significant seats by 2029 or form alliances. The proposal could galvanize their base but risks alienating traditional voters wary of economic experimentation.
The Treasury’s rejection and Starmer’s criticism indicate resistance from major parties, framing the bill as fiscally irresponsible. This could polarize debate, with Labour and Conservatives likely to prioritize regulatory caution over bold crypto adoption. Farage’s comparison to Brexit suggests he aims to rally populist sentiment, but mainstream political opposition may limit the bill’s traction. If passed, the bill would signal a pro-crypto stance, potentially aligning the UK with nations like El Salvador, which adopted Bitcoin as legal tender. This could enhance diplomatic ties with crypto-friendly jurisdictions but strain relations with anti-crypto regulators like the EU.
A Strategic Bitcoin Reserve could normalize cryptocurrency in the UK, encouraging retail and institutional adoption. This aligns with Farage’s narrative of financial sovereignty, resonating with those skeptical of centralized banking. However, public skepticism, fueled by crypto scams or volatility, could lead to backlash if the reserve underperforms or if debanking protections enable illicit activity.
Resistance to CBDCs
Opposing a central bank digital currency (CBDC) taps into concerns about government surveillance and control, appealing to privacy advocates. However, it may conflict with global trends, as many countries (e.g., China, EU) explore CBDCs, potentially isolating the UK in digital finance innovation. The proposal could deepen divides between tech-forward, libertarian-leaning groups and traditionalists or risk-averse voters. A UK Bitcoin reserve could boost global Bitcoin demand, potentially driving up prices and reinforcing its status as a “digital gold.” This might prompt other nations to consider similar reserves, accelerating institutional adoption.
Conversely, failure or backlash could dampen global confidence in sovereign crypto holdings. The UK could leapfrog competitors in the crypto space, challenging hubs like Singapore or Dubai. However, regulatory misalignment with the EU or U.S. could complicate cross-border crypto trade and compliance. If the UK moves too aggressively without robust regulation, it risks criticism from international bodies like the Financial Action Task Force (FATF), potentially affecting its standing in global finance.
Managing a Bitcoin reserve would require secure storage (e.g., cold wallets) and clear governance to avoid mismanagement or theft, as seen in past crypto hacks. Reform UK’s limited parliamentary power makes passage unlikely without a major electoral shift or coalition support. Convincing a skeptical public and financial institutions to embrace Bitcoin as a reserve asset will be challenging, especially given the Treasury’s stance and Starmer’s critique.
Farage’s bill could position the UK as a crypto pioneer, boosting economic innovation and appealing to a niche but growing voter base. However, it faces significant hurdles due to political opposition, economic risks, and regulatory complexities. The debate could shape the UK’s financial future, but its success hinges on Reform UK’s electoral gains and broader public acceptance of cryptocurrency.