UK Crypto Adoption Surge: Reform UK Pushes for Bitcoin Tax Payments

Amidst growing global interest in cryptocurrencies, the UK is experiencing a significant surge in adoption. This follows Donald Trump's return to the political scene, which has injected renewed momentum into the cryptocurrency market. The UK's increased interest is attracting attention from both individuals and institutions, and even potentially nation-states.

Increased Crypto Adoption in the UK

Several key developments highlight this upward trend:

• Reform UK's Crypto Bill: This bill proposes dramatically reducing capital gains tax on cryptocurrencies from 24% to 10% and, uniquely, allowing taxpayers to pay taxes using Bitcoin.
• Bank of England Considering Bitcoin: Michael Saylor, co-founder of Strategy (formerly MicroStrategy), suggests the Bank of England is on the verge of adding Bitcoin to its reserves. This follows Reform UK leader Nigel Farage's announcement at the Bitcoin 2025 conference that his party aims to establish a Bitcoin digital reserve within the Bank of England. This initiative underscores a potential shift in the UK's approach to digital assets.

Reform UK's Pro-Crypto Stance

Reform UK's Crypto Assets and Digital Finance Bill is a major step towards creating a more crypto-friendly environment. Beyond tax reductions, it aims to prevent banks from closing accounts solely due to cryptocurrency transactions. The party's acceptance of crypto donations further emphasizes its commitment to digital finance.

Party Chairman Zia Yusuf highlighted that these tax reforms could attract high-net-worth individuals currently leaving the UK due to less favorable crypto tax policies in other countries.

Reaction and Market Analysis

The move has drawn comment from various figures, including Peter Schiff, who noted the potential implications of such a shift.

The UK's evolving cryptocurrency regulations, including Finance Minister Rachel Reeves' recent announcement to regulate crypto firms under existing financial regulations, signals a move towards regulatory alignment with the U.S. rather than the EU's approach.

With approximately 12% of British adults now owning cryptocurrencies (a significant increase from 4% in 2021), and the UK ranking 12th globally in crypto adoption according to Chainalysis, the UK's digital economy is rapidly evolving.

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