Farage Urges Establishment of BTC Reserve and Lifting of Crypto Bank Prohibitions
Nigel Farage is no longer just making waves in UK politics; he is now aiming to disrupt the whole financial landscape. At the Bitcoin 2025 event in Las Vegas, the leader of Reform UK unveiled a series of proposals that resemble a digital currency manifesto more than a traditional campaign outline.
He has dubbed it the “Crypto Assets and Digital Finance Bill,” filled with daring concepts intended to transform the UK into a nexus for digital assets. Key elements of the plan include reducing crypto taxation, creating a national reserve for Bitcoin, and prohibiting banks from shutting down accounts of those using crypto.
As Farage made headlines in Vegas, back in the UK, President Trump added to the tension by announcing new tariffs on China, increasing the strain on global markets. This context rendered Farage’s address even more relevant than anticipated.
Reducing Crypto Tax to 10 Percent
Let’s delve into the aspect that caught everyone’s eye. Farage aims to lower the capital gains tax on crypto asset earnings from a hefty 24 percent to a straightforward 10 percent. His rationale? The existing tax framework merely encourages individuals to avoid tax reporting or relocate their funds to jurisdictions with more favorable regulations.
Let’s modernize the British economy for the 21st century.
Review Reform UK’s Cryptoassets and Digital Finance Bill.
— Nigel Farage MP (@Nigel_Farage) May 30, 2025
He asserts that this initiative isn’t merely about enabling the wealthy to evade taxes. It’s about simplifying the system to ensure crypto law. Additionally, it signals that the UK must cease stifling innovation and begin to compete with countries like Portugal, which already provide a more crypto-friendly environment.
A Bitcoin Reserve? Yes, You Heard Correctly
Farage additionally proposed establishing a BTC reserve at the Bank of England. This is not a common thought among mainstream politicians in the UK. However, he believes it is a sensible move.
He framed it as a contemporary financial safeguard. Just like central banks keep gold, why not hold some Bitcoin? Countries such as El Salvador have already pursued this route, and Farage envisions Britain following suit.
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Challenging the Banks
This topic struck a personal chord. Farage reminisced about having his Coutts bank account closed in 2023, mentioning that countless individuals involved in crypto have endured the same fate.
His legislation would make it illegal for banks to discriminate against lawful crypto users. If your funds are legitimate and your transactions are lawful, banks shouldn’t have the right to exclude you. He is channeling his own banking struggles into policy, which could resonate with a growing electorate facing similar barriers.
Reform UK Embraces Crypto
To demonstrate his genuine commitment, Farage also revealed that Reform UK is now open to receiving crypto donations. Bitcoin, Ethereum, Solana, and even USDC are all acceptable. Their infrastructure is already equipped to facilitate this, and they are adhering to election regulations by mandating full donor identification.
Zia Yusuf, the party chairman, added that they are considering the possibility of allowing tax payments in crypto and even establishing a sovereign wealth fund supported by digital assets. It’s an ambitious initiative, but the message is unmistakable: they regard crypto as integral to their platform, not merely a gimmick.
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Is This the Right Time and Topic?
With Trump accusing China of breaching trade agreements and threatening new tariffs, the markets are already experiencing tension. Farage’s focus on crypto arrived amid these developments, as an increasing number of individuals seek alternatives to conventional finance.
Regardless of whether the UK takes action on these proposals, the fact that crypto has emerged as a significant topic in national politics conveys a great deal. Farage is driving the dialogue, and other parties may find themselves responding soon. Crypto has transcended its niche status among tech enthusiasts and traders. It’s officially part of the political discourse.
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Key Takeaways
- Nigel Farage announced a comprehensive “Crypto Assets and Digital Finance Bill” featuring reduced taxes, a BTC reserve, and enhanced protections for crypto users.
- He aims to reduce the capital gains tax on crypto from 24% to 10%, intending to enhance the UK’s competitiveness with favorable crypto jurisdictions.
- Farage suggested the Bank of England maintain Bitcoin in reserve, similar to gold, positioning it as a contemporary safeguard.
- The legislation would prohibit banks from closing accounts based on lawful crypto involvement, taking cue from Farage’s personal banking challenges.
- Reform UK has begun accepting crypto donations, emphasizing the party’s commitment to making digital assets a central campaign issue.
The post Farage Calls for Bitcoin Reserve and an End to Crypto Bank Bans appeared first on 99Bitcoins.
