Nigel Farage Courts UK Crypto Industry with Trump-Style Pitch for Bitcoin Reserve

Nigel Farage has positioned himself as the UK crypto sector's political champion, pitching plans for a state-owned bitcoin reserve and sweeping tax reforms in a strategy mirroring Donald Trump's successful cultivation of digital asset industry support.

"When it comes to your industry, when it comes to growth in this industry, then I am your champion," Farage told attendees at the Digital Asset Summit in London on Monday, according to the Financial Times. "We will effectively bring crypto in from the cold."

The Reform UK leader is attempting to replicate Trump's approach of building electoral support from digital asset investors. Trump addressed bitcoin conferences before the 2024 U.S. election and attracted significant crypto industry donations, helping secure backing that provided political momentum.

Farage leads Reform UK, a rightwing populist party currently ahead in polling before the next general election anticipated in 2029. The FT reports Reform is the only major British party accepting cryptocurrency donations, allowing Farage to potentially capture support from an industry seeking political influence.

The timing reflects pressure on UK regulators from crypto advocates to embrace digital assets more openly, particularly as Trump has championed the sector and the European Union has implemented regulatory frameworks. Britain hosts substantial crypto operations across exchanges, trading firms and service providers.

Reform's proposed legislation would establish a national Bitcoin reserve funded by roughly £5 billion ($6.67 billion) in Bitcoin authorities have seized from criminal operations, the FT reported. The confiscated holdings would form a state-owned strategic reserve, following similar concepts Trump has promoted.

The bill would also create a flat 10% capital gains tax rate on crypto profits, replacing current variable rates based on activity type and individual income. Reform additionally proposes allowing tax payments in cryptocurrency, though implementation specifics remain unclear.

Farage attacked Bank of England exploration of a central bank digital currency during his remarks, calling a potential digital pound "the ultimate authoritarian nightmare," according to the FT. He promised to halt the initiative immediately if Reform wins the next election, mirroring Trump's ban on CBDC development.

The BoE is examining whether to create a digital currency functioning as electronic cash, though no decision has been made. Farage's opposition taps libertarian concerns about government surveillance resonating with crypto community segments.

He also criticized proposed Bank of England restrictions on stablecoin holdings as "frankly ridiculous," telling the conference he had discussed the matter with BoE Governor Andrew Bailey, the FT reported. The central bank has suggested limits as part of stablecoin regulatory frameworks managing systemic risk.

Farage connected crypto advocacy with opposition to Prime Minister Keir Starmer's digital ID initiatives, characterizing them as excessive state control. The combined platform around financial privacy and limited government creates broader messaging beyond cryptocurrency specifically.

Farage built his political profile on populist positions challenging establishment consensus, initially as UK Independence Party leader driving the Brexit referendum before founding Reform UK. His crypto advocacy fits patterns of identifying emerging issues where populist messaging can attract new supporters.