Nigel Farage’s Reform UK leads national polls, indicating an unusual shift away from the established Conservative-Labour political dynamic. The party is actively appealing to voters dissatisfied with the government’s perceived overregulation and excessive taxation of digital assets.
This strategy mirrors Donald Trump’s successful embrace of the “crypto vote” in the 2024 US election, suggesting digital asset policy is now a significant, rising factor in UK electoral politics.
Reform UK Leads: The Two-Party Collapse
With the next general election scheduled for 2029, the current political scene is marked by a profound, historic shift. Nigel Farage’s Reform UK party consistently leads national voting intention polls.
SponsoredThis revelation represents a highly unusual feat for a party outside the traditional Conservative-Labour duopoly.
Seat projections now indicate Reform UK could become the largest party in a hung parliament if an election were held immediately, with some models even suggesting an outright majority. This shift signals a major breakdown in voter loyalty to the two major parties.
The projected collapse of the establishment parties is dramatic. The governing Labour Party won in a landslide in 2024, ending 14 years of Conservative rule.
However, amid political and economic challenges, it’s expected to lose many seats as its vote share declines sharply.
Amid this political volatility, Reform UK seeks to distinguish itself from the establishment parties. It achieves this by offering radical policy alternatives in areas where the current government is perceived to have failed.
One such area that Farage has specifically targeted is the United Kingdom’s handling of the cryptocurrency sector.
The UK’s Crypto Grievances
Sponsored SponsoredToday, the cryptocurrency community across the UK is generally dissatisfied with the government’s treatment of digital assets. Complaints center typically around a lack of clarity, overregulation, and excessive taxation.
The Financial Conduct Authority (FCA) uses a “same risk, same regulation” approach, grouping all digital assets, whether Bitcoin, stablecoins, or meme coins, under a broad “high-risk, speculative investments” label.
Because cryptocurrency is subject to Capital Gains Tax (CGT) in the UK, every transaction—including crypto-to-crypto swaps—represents a complex taxable event that requires meticulous record-keeping.
The government has also drastically cut the tax-free Capital Gains allowance, reducing the cap from £12,300 in 2022 to just £3,000 in 2024.
In response, critics feel the government has failed to deliver its promise of creating a global innovation hub and has generated a hostile environment instead.
In response, Reform has proposed crypto improvements that would better integrate it into the financial system.
Farage’s Crypto Finance Bill
SponsoredReform UK has distinguished itself by adopting the most explicitly pro-crypto stance among the UK’s major political organizations. It details specific proposals within its draft “Cryptoassets and Digital Finance Bill.”
One of the most significant policies is the planned reduction in the tax burden for crypto investors. Reform has promised to cut the CGT on crypto assets from the current 24% to a flat 10% rate.
Farage also addressed the contentious issue of debanking. He proposed legislation that would explicitly forbid banks and payment providers from denying certain customers service based solely on their involvement in crypto.
Reform has also advocated for the Bank of England to establish a Sovereign Bitcoin Reserve Fund. Additionally, the party became the first major UK political group to accept Bitcoin or other cryptocurrency donations.
Despite the next general election being four years away, Farage’s pro-crypto political platform closely mirrors the agenda championed by Trump during his 2024 election campaign.
US Precedent, UK Reality
Sponsored SponsoredThe political situation in the United Kingdom draws similarities to the one the United States experienced in 2024.
Multiple pre- and post-election polls indicated that Trump’s pro-crypto stance significantly influenced his support among cryptocurrency users.
A Fairleigh Dickinson University poll from August 2024 found that likely voters who owned cryptocurrencies favored Trump over Kamala Harris by a 12-point margin.
“Trump has been reaching out to the crypto community, and it seems to have paid off,” said Dan Cassino, the Executive Director of the poll. “It might be easy to dismiss them as insignificant, but I don’t think people realize exactly how widespread crypto ownership is.”
A separate poll from The Digital Chamber suggested that about 1 in 7 likely voters considered a candidate’s crypto stance to be “very important” in determining their vote.
Like in the United States, crypto ownership in the United Kingdom is increasing. Recent data from the FCA indicates that around 12% of UK adults now own crypto, representing a significant increase from just 4% in 2021.
Assuming Farage remains the sole candidate to present a pro-crypto agenda, the Reform Party will likely continue attracting these votes across the United Kingdom.
