Reform UK has become the first political party in Britain to accept cryptocurrency donations, party leader Nigel Farage confirmed during a Bitcoin conference in Las Vegas. The move forms part of a broader push by the party to embrace digital finance, promising tax cuts on crypto assets and introducing legislation aimed at making the UK a global hub for crypto trading.
Speaking to attendees on Thursday, Farage urged young people to support Reform UK’s vision of a “21st-century Britain,” declaring: “Crypto, Bitcoin, digital assets are here to stay.” He also unveiled a draft Cryptoassets and Digital Finance Bill, describing it as a “bold, post-Brexit roadmap” to position London as a leading financial centre for digital currencies.
Critics Warn of Donor Anonymity Risks
However, the announcement has sparked concerns among financial crime experts who warn that accepting donations in cryptocurrency opens the door to potential abuse. Steve Goodrich, a financial transparency specialist, told Politico’s Playbook that the anonymity of digital currencies poses a significant risk to the integrity of political donations.
“The anonymity offered by digital currencies makes it nearly impossible for political parties to have confidence in their donors’ identities,” Goodrich said. “This could open a dangerous loophole allowing unlimited anonymous funds to flow into British politics.”
Farage Eyes Bitcoin Reserve Fund
Farage also proposed the creation of a sovereign Bitcoin reserve fund, arguing that taxpayers should benefit from any future appreciation in the cryptocurrency’s value. The proposal mirrors a recent move by Donald Trump, who once labelled Bitcoin a “scam” but later embraced crypto funding during his 2024 presidential campaign.
Trump’s administration announced in March that seized Bitcoin assets would no longer be auctioned off but instead retained by the government to benefit from price increases. Farage’s plan follows a similar path, aiming to capitalise on the UK’s existing £4.7 billion in crypto holdings, according to Arkham Intelligence.
Crypto Debate Divides UK Parties
While Reform UK pushes forward with its pro-crypto policies, Labour has dismissed the idea of treating Bitcoin as a state investment, citing its extreme volatility. The UK government, meanwhile, has yet to decide whether to sell or retain its existing crypto reserves.
Although Farage’s crypto-focused strategy may not resonate broadly with voters facing a cost-of-living crisis, it does set Reform UK apart from both the Conservatives and Labour, neither of which has taken a clear stance on cryptocurrency policy.
