Farage Unveils Bold Crypto Plan: Bitcoin in the Bank of England, Tax Cuts for Traders

Nigel Farage, a British politician and leader of Reform UK, a right-wing political party has outlined a crypto-friendly comprehensive plan to position the United Kingdom as a global leader in digital finance should his Reform party win the next general election.

Speaking at the Bitcoin 2025 conference in Las Vegas, the Reform leader announced plans to introduce a Crypto Assets and Digital Finance Bill, aiming to reshape the country’s stance on cryptocurrencies and blockchain-based innovation.

Farage’s proposal includes several notable policy changes: establishing a national Bitcoin reserve within the Bank of England, reducing capital gains tax on crypto assets from 24% to 10%, and enacting legal protections to prevent banks from closing accounts linked to digital currency activity.

He emphasized the need for updated regulation, arguing that both Labour and Conservative governments have failed to adapt to the growing crypto sector. According to Farage, over 10% of UK citizens already hold digital assets, with one in four people under the age of 30 involved in the space.

A Push for Reform and Sovereignty Through Crypto

The Reform party’s crypto push is partly influenced by broader international trends, including the current US administration’s embrace of digital assets.

Farage drew comparisons between the UK’s slower pace and recent moves in the United States to provide regulatory clarity and support crypto innovation. He positioned Bitcoin as a tool of financial sovereignty, referencing both national independence and personal financial freedom.

According to recent polling data, Reform has gained momentum, now polling ahead of Labour and the Conservatives in some aggregated surveys.

However, the general election isn’t expected before August 2029. Farage acknowledged the long road ahead but stressed the importance of starting a national conversation. He pointed to his past influence on Brexit as an example of how public debate can shift political direction.

The UK currently holds roughly 61,245 BTC in government-managed wallets, placing it third globally behind the US and China. While Farage wants to expand this reserve, existing Treasury plans do not include such a strategy. Meanwhile, the UK has gradually been building a framework for crypto regulation.

This includes bans on crypto derivatives for retail investors, financial promotions rules, and consultations on future oversight of stablecoins, staking, and custody services.

Crypto Donations and Political Momentum

Reform UK has also become the first political party in Britain to accept donations in Bitcoin and other cryptocurrencies, a move Farage hopes will attract younger voters and tech-savvy supporters. He also reiterated his opposition to the introduction of a central bank digital currency (CBDC), calling it a threat to individual liberty.

Despite his party’s recent local election success and the growing appetite for alternatives to traditional finance, Farage made it clear that systemic change would require building significant political support.

He emphasized grassroots engagement and growing party membership as critical steps toward building what he called a “People’s Army” focused on long-term reform.

Whether Farage’s proposals gain traction or not, the speech signals that cryptocurrency policy could become a more prominent issue in UK politics. For now, the stage has been set for broader debate on how the country engages with digital finance in the years ahead.

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