‘A rainy island with a hostile tax system is a hard sell’: Crypto industry reacts to UK Chancellor’s budget statement

UK Chancellor Rachel Reeves' Autumn Statement avoided imposing fresh tax rises on crypto assets, which was welcomed by industry figures like Azariah Nukajam of Gemini, who noted crypto is being treated like other asset classes. However, the statement, alongside recent legislative moves like the Cryptoassets Order and the upcoming CARF regime, indicates a push for tougher, more traditional finance-style regulation and increased tax transparency to close loopholes.

Despite avoiding the highest capital gains tax rates seen elsewhere, some industry leaders expressed concern that the UK's overall environment, characterized by regulatory scrutiny from the FCA and existing tax levels, makes it a "hard sell" compared to global rivals. Ben Cousens of Antidote felt the budget missed an opportunity to incentivize founders to stay and build in the UK, while Richard Muirhead of Fabric Ventures warned that a "rainy island with a hostile tax system" risks driving talent and venture capital to more favorable jurisdictions.

Experts stressed that for the UK to achieve its goal of becoming a crypto hub, it needs favorable taxation policies combined with robust, interoperable regulatory regimes aligned with international standards. Concerns were raised that the current environment is leading to an outflow of skilled talent needed to compete in the digital assets space.

(Source：The Block)