TL;DR
- Reform UK proposes that the Bank of England hold Bitcoin seized by authorities instead of selling it, positioning the asset as part of a long-term national reserve.
- The party also plans to cut capital gains tax on crypto from 24% to 10% to attract investors, companies, and developers.
- In addition, it intends to protect lawful crypto users by preventing banks from closing accounts based solely on digital asset activity.
Nigel Farage, leader of Reform UK, is attempting to reposition the United Kingdom as a competitive financial hub by embracing the potential of digital assets. His message is not confined to crypto enthusiasts. It targets entrepreneurs, startups, and younger professionals who see little innovation in conventional banking and growing momentum in decentralized technology. The idea of retaining seized Bitcoin as a state reserve, rather than auctioning it off, aligns with debates already happening in countries like Switzerland and Singapore. Several European and Asian policymakers have begun exploring how digital assets could serve as strategic reserves, and Farage aims to place the UK ahead of those developments.
Bitcoin As Strategic Hedge
The plan to convert seized cryptocurrencies into a long-term reserve challenges the long-standing practice of liquidation through auctions. Within Reform UK, the proposal is viewed as a way to diversify national financial backing and reduce reliance on traditional monetary instruments. If the Bank of England were to accumulate a modest share of Bitcoin over time, it could build an alternative hedge in moments of inflationary pressure or global instability.
Reducing capital gains tax to 10 percent on digital investments is designed to make the UK more competitive when compared with jurisdictions like Dubai or Lisbon. Institutional investors are already exploring offices in locations with lighter and clearer fiscal policies. This measure targets the outflow of capital and talent by offering a friendlier environment for blockchain firms and fintech projects.
Regulatory Shift And International Signaling
Reform UK also plans to stop banks from shutting down accounts purely for conducting legal crypto transactions. That proposal emerged partly from Farage’s own account closure dispute and reflects a common complaint from British entrepreneurs. The party also rejects the introduction of a central bank digital currency, arguing it could hand excessive control to state authorities.
There is also an international angle. The United States, Japan, and the United Arab Emirates are discussing sovereign digital reserves and more flexible tax rules. If the United Kingdom embraces a similar direction, London could reclaim its image as a financial innovator, something analysts believe has diminished since Brexit.
