Reform UK Embraces Crypto Donations, 10% Tax and Bitcoin Reserve
Reform UK has begun accepting crypto donations, receiving undisclosed contributions at a London conference. Nigel Farage denied direct firm donations but positions the party as a champion of digital assets. Reform UK plans to introduce the Crypto Assets and Digital Finance Bill to cut cryptocurrency capital gains tax from 24% to 10%, ban bank account closures over legal crypto transactions, and establish a Bitcoin reserve at the Bank of England. Farage criticized proposed stablecoin limits and CBDCs as threats to innovation and freedom. Despite holding only five parliamentary seats, Reform UK leads in polls ahead of 2029, underscoring growing political engagement with crypto in the UK. Traders may see this as positive momentum for crypto donations and regulation, boosting market sentiment.
Bullish
Political support from a leading UK party for crypto donations and proposed tax cuts is likely to boost market sentiment. In the short term, traders may respond to the positive news flow with increased buying, driving price upticks. Over the long term, passage of the Crypto Assets and Digital Finance Bill could lower tax burdens, protect crypto banking services, and institutionalize a Bitcoin reserve, strengthening market infrastructure and promoting wider adoption. These developments point to a more favorable regulatory environment in the UK, supporting bullish momentum for BTC and the broader crypto market.