Gemini Executive Reveals UK Budget Tightens Crypto Regulation While Maintaining Tax Status
London's financial district braces for regulatory waves as Gemini's top brass confirms the UK budget brings heavier oversight to digital assets—but surprisingly spares investors from tax increases.
The Regulatory Squeeze Tightens
Watchdogs are circling crypto exchanges with renewed vigor, demanding stricter compliance protocols and enhanced transparency measures. Financial Conduct Authority officials now require real-time transaction monitoring and deeper liquidity reporting—moves that could squeeze smaller players out of the market.
Tax Relief Amid Regulatory Storm
While regulatory nooses tighten, the Treasury Department notably avoided hiking capital gains taxes on digital assets—a rare win for crypto holders in an otherwise restrictive environment. The decision preserves current tax treatment despite mounting pressure from traditional finance critics who still view crypto as 'magic internet money.'
Industry veterans see the mixed approach as typical government maneuvering—tightening control while avoiding the political fallout of outright hostility toward a growing asset class that's increasingly difficult to ignore.
No Tax Hike Seen as Positive Sign
The budget confirmed that there will be no increases to tax rates applied to crypto transactions. Nukajam welcomed this decision, noting that treating crypto “like any other asset class” helps reinforce its long-term viability as an alternative investment.
Crypto in the UK is currently subject to capital gains tax between 18% and 24%, depending on an individual’s income band. Nukajam argued this gives the UK a competitive advantage over certain European jurisdictions, including Spain — where rates can reach 28% — and France, where lawmakers recently backed a measure that WOULD classify high-value crypto holdings over €1.3 million as “unproductive wealth,” regardless of whether profits were made.
Regulators Focus on Compliance and Transparency
Despite unchanged tax rates, the compliance direction is clear, Nukajam said. HMRC has increased the number of warning letters sent to individuals suspected of underpaying crypto tax, while the forthcoming CARF framework — expected in 2026 — will significantly expand government visibility over crypto transactions.
“The government’s priority is to close tax loopholes and increase reporting and compliance standards across the crypto sector,” she said.
UK Pushes to Become a Global Crypto Hub
Nukajam added that a stronger regulatory framework could ultimately benefit regulated platforms such as Gemini, helping them integrate into mainstream UK finance and build trust with both institutional and retail users.
“Creating this environment will ensure that regulated crypto firms like Gemini… can position themselves as part of mainstream UK finance,” she said, adding that Gemini’s long-standing focus on compliance and security prepares it well for the incoming rules.
She argued that the UK still has an opportunity to establish itself as a leading jurisdiction for digital assets, provided it maintains favourable tax conditions and aligns regulatory approaches with other global markets. She also pointed to Germany’s tax exemption for crypto held more than one year as a policy the UK could consider adopting to incentivise long-term investment.
