Key Takeaways:
Reform UK leader Nigel Farage will present a draft crypto bill during the Bitcoin 2025 conference in Las Vegas. The bill proposes cutting capital gains tax on crypto to 10%, creating a regulatory sandbox, and outlawing payment discrimination. Reform claims crypto ownership is rising among young voters, with 25% of 18–34-year-olds holding digital assets.Reform UK leader Nigel Farage will present a draft cryptocurrency bill in Las Vegas on Thursday, calling for a lower tax rate on crypto profits and new legal protections for digital payments, according to a report published by Bloomberg on May 29.
The proposal includes reducing capital gains tax on crypto assets to 10% from 24%, introducing a two-year regulatory sandbox for financial services, and banning service discrimination based on payment method.
Farage Links Bitcoin to Financial Autonomy
Farage is scheduled to outline the plan during an appearance at the Bitcoin 2025 conference, where his party says he will push to make the UK a “crypto powerhouse.”
The measure is the first prepared legislation to be announced by Reform and comes as the party has gained in national polling, despite holding only five seats in Parliament.
“Seven million people in the UK now hold crypto, including one in four people aged 18-34,” Reform said in a statement. “Not a single legacy party has taken them seriously, but Reform will.”
Farage, a former metals trader and longtime supporter of Bitcoin, has described the asset as a tool for resisting centralized control. His event biography links digital currency adoption to personal autonomy and frames it as a rejection of surveillance and monetary policy decisions.
According to the report, his stance contrasts with the Bank of England’s more cautious approach to unbacked crypto assets. While previous officials have explored tokenized payment systems like a potential digital pound, they have warned against the volatility of assets such as Bitcoin.
UK Crypto Regulation Lags Behind Despite Market Activity
Labour leader Keir Starmer criticized the announcement, likening it to the economic policies of former Prime Minister Liz Truss. Reform plans to hold a media briefing in London on Friday to release the full bill.
While the UK has taken steps to regulate the crypto industry, progress has been slow and fragmented. The Financial Conduct Authority (FCA) oversees crypto asset promotions and registration, but comprehensive legislation governing the broader sector has yet to be implemented.
Industry groups have repeatedly called for clearer guidance, particularly on stablecoins and decentralized platforms. Some fintech executives have warned that delays in regulation could cause the UK to fall behind jurisdictions like the European Union, where the Markets in Crypto-Assets (MiCA) framework is already being rolled out.
Despite these hurdles, the UK remains an active crypto market. London continues to host a concentration of blockchain startups, trading platforms, and venture capital firms. Activity is particularly strong in tokenization, gaming assets, and compliance tools.
Frequently Asked Questions (FAQ)
While the EU is implementing the MiCA framework, which covers stablecoins, service providers, and consumer protection, the UK has not passed a similarly comprehensive law. Reform’s bill attempts to close that gap with a faster, more targeted approach.
Such a ban would compel financial and commercial institutions to accommodate crypto transactions, raising questions about enforcement, liability, and compatibility with existing anti-money laundering laws.
If public interest continues to grow and polling support holds, other UK parties may be pressured to respond with their own crypto positions or adopt elements of the bill in broader financial reform discussions.
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