Reform U.K. has proposed a bill to reduce capital gains tax on cryptocurrencies.

The bill includes plans to create a national Bitcoin reserve fund.

Reform wants tax payments to be allowed in Bitcoin, with options to convert or hold the funds.

Reform U.K. has released a new digital finance bill aiming to cut capital gains tax on cryptocurrencies and promote Bitcoin adoption. The bill outlines a national Bitcoin reserve fund and mandates equal access to banking for crypto users. These proposals come as the party, led by Nigel Farage, sees a sharp rise in polling figures.

Reform U.K. Launches Crypto Reserve Fund

The proposed ” Cryptoassets and Digital Finance Bill ” contains plans to cut capital gains tax on Bitcoin and other digital assets. Reform U.K. argues this will attract global crypto businesses and increase tax revenue through higher transaction volumes. Citizens would also be able to pay taxes using Bitcoin, which would be either stored or converted.

During a campaign video filmed at a Bitcoin conference in Las Vegas, which quickly drew the eyes of those in crypto communities, Farage presented the proposals. This move of the party is in sync with the younger demographics which says one in four now owns digital assets, the party notes. Reform U.K. also became the first British political party to accept donations in Bitcoin and Ether.

Digital assets collected through taxes or donations would be used to build a sovereign crypto treasury, labelled as a Bitcoin reserve fund. And in accordance with the proposal, this fund will be transparently managed to help give the nation long-term economic resilience. This is a breakaway from traditional economic policies, Farage says, which he argues are incapable of dealing with the new financial reality.

Ethereum Added to Political Strategy

The bill lists Bitcoin and Ether as acceptable forms for political donations, a new development for campaign financing. Reform U.K. claims the current government lacks the vision to support emerging digital assets and attract fintech innovation. 

But the bill also contained a legal provision to protect law-abiding crypto users from crypo user discrimination, as banks are forbidden from terminating services for that reason. Debanking harms lots in the crypto community, Reform argues, undermining financial fairness. This legislation seeks to protect digital asset holders and instill trust in decentralized financial tools.

Supporters say including Ether makes it easier and more flexible, gives more reach for fundraising, and sends a message of innovation. In economic strategy, they believe a multi-currency approach strengthens that. With the right crypto-friendly tax laws and lega framework, there could be new revenue and jobs, according to Reform.

Reform U.K. Faces Tough Electoral Reality

Despite growing support, Reform U.K. faces significant challenges due to Britain’s “first past the post” voting system. In 2024, the party won over four million votes but just five parliamentary seats. For smaller parties, this outcome is common; it’s hard to get nationwide representation even with a big vote share.

Under the current system, the party will need to win some constituencies, and current projections suggest it would do so across many constituencies. Colour-coding the electoral map, Labour and the Conservatives continue to dominate, restricting Reform’s ability to convert votes into seats. Recent local influence has yet to secure the party’s general election success.

However, Reform’s broader economic policies, such as increasing the personal income tax allowance to £20,000, are strongly opposed, not least because this is seen as too big a cost. An £80bn hole in the budget is how much these tax cuts would leave, endangering economic stability, according to critics. Crypto enthusiasts may back the proposals, but public opinion could focus more on the cost-of-living crisis.

As Euro politician Farage rebrands himself and his political brand in the name of global crypto and U.S. campaigns, he is leading those who the industry has left behind. All the momentum in the world isn’t even close to being enough to translate into electoral victory, even with support for digital assets. 

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Filed under: Bitcoin - @ May 31, 2025 3:00 am