Replicating Trump, the leader of the Reform Party in the UK suggests establishing a £5 billion Bitcoin reserve

Wallstreetcn
2025.10.15 16:29
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Nigel Farage, the leader of the Reform Party in the UK, proposed a series of policy recommendations regarding cryptocurrencies, including suggesting that the UK government establish a Bitcoin strategic reserve of approximately £5 billion using seized assets; imposing a unified capital gains tax of 10% on cryptocurrencies; terminating the Bank of England's digital pound project; and allowing tax payments to be made in cryptocurrency (on a voluntary basis)

UK officials are emulating Trump by using the identity of "cryptocurrency advocates" in hopes of gaining votes, as the UK is swept by a wave of cryptocurrency.

At a conference held in London this week, UK Reform Party leader Nigel Farage positioned himself as the "cryptocurrency advocate" for the UK and proposed a series of policy initiatives regarding cryptocurrency. The core content includes: suggesting that the UK government establish a Bitcoin strategic reserve of about £5 billion using confiscated assets; imposing a unified capital gains tax of 10% on cryptocurrencies; terminating the Bank of England's digital pound project; and allowing tax payments in cryptocurrency (non-mandatory).

This policy proposal is very similar to the three policies Trump proposed during his cryptocurrency campaign. Nigel Farage has positioned himself as the "cryptocurrency advocate" for the UK, even adopting Trump's tone and timing for public statements.

Imitating Trump: Cryptocurrency Becomes a New Political Chip

Nigel Farage's strategy closely resembles Trump's campaign during the 2024 US presidential election. Trump's clearly effective pro-cryptocurrency stance was seen as a way to attract voters holding digital assets. According to a poll conducted by Fairleigh Dickinson University in August 2024, potential voters holding cryptocurrencies supported Trump 12 percentage points more than his opponent Kamala Harris. The executive director of the poll, Dan Cassino, noted,

"Trump extended an olive branch to the crypto community, which seems to have been reciprocated."

Now, in the UK, Farage is attempting this model. According to the latest data from the UK's Financial Conduct Authority (FCA), about 12% of UK adults currently hold or have held crypto assets, up from just 4% in 2021, creating a voter group that cannot be ignored. Farage's pro-cryptocurrency stance clearly caters to this group in hopes of gaining votes.

Limited Influence, Cryptocurrency Becomes a Political Topic

Despite Farage's ambitious plans, his actual influence in Parliament is quite limited. Currently, the UK Reform Party holds only 5 seats out of a total of 650 parliamentary seats, making it exceptionally difficult for proposals to be converted into policy. Moreover, the key institutions involved, such as the Treasury, the Bank of England, or Parliament, are not directly influenced by him. His policies may help spark discussions, but usually only that.

However, some parts of Farage's proposals are already being implemented. The UK has begun laying the groundwork for cryptocurrency regulation, particularly in the areas of stablecoins and custodial frameworks. Research on tokenized investment funds is also underway.

Farage's plans may struggle to become policy, but cryptocurrency policy is becoming a focal point in UK politics

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