Nigel Farage’s reform Britain is leading the referendum, showing an extraordinary shift from established conservative political dynamics. The parties are actively appealing to voters who are unhappy with government overregulation and excessive taxation of digital assets.
The strategy reflects the success of Donald Trump’s “crypto voting” embrace in the 2024 US election, suggesting that digital asset policy is a key upside in UK electoral politics.
British reform lead: Two parties collapse
With the upcoming general election scheduled for 2029, the current political scene is marked by profound and historical changes. Nigel Farage’s Reform British Party has consistently led the polls of national voting intentions.
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This revelation represents a very unusual feat for parties outside the traditional conservative rubber double layer.
Seat’s forecasts show that if reforms are made immediately, Britain could become the largest party in a suspended parliament, with some models suggesting a full majority. This shift shows a major breakdown of voter loyalty to the two major political parties.
The predicted collapse of the founding parties is dramatic. The Governance Labour Party won the landslide in 2024, ending 14 years of conservative rule.
However, amidst political and economic challenges, many seats are expected to be lost as vote shares drop significantly.
Within this political volatility, reform Britain is trying to distinguish it from founding parties. This is achieved by offering alternatives to radical policy in areas where current governments are perceived as failing.
One such sector that Farage is specifically targeting is its handling of the UK’s cryptocurrency sector.
British code dissatisfaction
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Today, cryptocurrency communities across the UK are generally unhappy with the government’s handling of digital assets. Complaints usually center around lack of clarity, overregulation, and excessive taxation.
The Financial Conduct Authority (FCA) uses a “same risk, same regulations” approach to group all digital assets under the broad “high risk speculative investment” label by spending Bitcoin, Stubcoin, or Memecoin.
Because cryptocurrencies are subject to capital gains tax (CGT) in the UK, all transactions, including crypto-to-crypt swaps, represent complex tax events that require meticulous recordkeeping.
The government has also significantly reduced its tax-free capital gains allowance, cutting the cap from £12,300 in 2022 to just £3,000 in 2024.
In response, critics feel that the government has failed to provide its promise to create a global innovation hub, creating an adversarial environment instead.
In response, the reforms are proposing improvements to crypto and better integrate it into the financial system.
Farage’s Crypto Finance Bill
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Reform Britain has distinguished itself by adopting the most explicitly promoted attitude of the UK’s major political organisations. It details specific proposals within the draft “CryptoAssets and Digital Finance Bill.”
One of the most important policies is planned reductions in the tax burden of crypto investors. The reform has pledged to reduce CGT on crypto assets from the current 24% to a flat 10% rate.
Farage also addressed the controversial issue of taking off. He proposed legislation that explicitly prohibits banks and payment providers from refusing certain customer service based solely on cryptographic involvement.
The reform also advocates that the Bank of England establishes a Sovereign Bitcoin Reserve Fund. Additionally, the party became the first British political group to accept donations of Bitcoin or other cryptocurrency.
The next general election is four years ago, but the political platform for Farage’s custody players closely reflects the agenda Trump defended during the 2024 campaign.
US precedent, UK reality
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The UK’s political situation is similar to what the US experienced in 2024.
Several pre- and post-election polls showed that Trump’s custody stance had a major impact on his support among cryptocurrency users.
A Fairy Dickinson University poll from August 2024 found that voters who owned cryptocurrency supported Trump with a 12-point margin over Kamala Harris.
“Trump has been reaching out to the crypto community and it appears to have been rewarded,” said Dan Cassino, executive director of the poll. “It may be easy to dismiss them as insignificant, but I don’t think people are aware of exactly how widespread crypto ownership is.”
Another vote from the digital chamber suggested that about one in seven voters consider the candidate’s code stance as “very important” in determining the vote.
Like the US, UK crypto ownership is on the rise. Recent data from the FCA shows that around 12% of UK adults own cryptography, representing a significant increase from just 4% in 2021.
Assuming Farage is still the only candidate to present a custody agenda, the Reform Party could continue to attract these votes across the UK.