The UK's latest budget does not impose new taxes on cryptocurrencies, but the government plans to advance stricter reporting and regulatory measures to enhance oversight of the sector—amid concerns about the country's competitiveness as a cryptocurrency jurisdiction.

Chancellor Rachel Reeves' Autumn Statement, released on Wednesday, did not further increase the capital gains tax rate, which already affected cryptocurrency investors last year. The statement outlined multiple plans, including maintaining the freeze on income tax thresholds, upcoming hikes in dividend tax, savings tax, and property income tax rates, as well as new restrictions on pension salary sacrifice benefits. Reeves also introduced additional measures aimed at broadening the tax base to support public services.

Azariah Nukajam, Head of Compliance at Gemini UK, welcomed the decision. "It's encouraging to see no new taxes on cryptocurrencies, signaling that they are being treated on par with other asset classes, ensuring their viability as an alternative investment in the long term," she said.

However, Nukajam noted that recent UK legislative and regulatory announcements—such as proposed new rules for crypto firms in the Draft Statutory Instrument—combined with the budget statement, indicate that "stricter, more 'traditional finance'-aligned regulations and tax transparency requirements will proceed as planned."

Prior to this budget, the UK adjusted capital gains tax last year: rates for cryptocurrencies and other investment assets rose from 10% and 20% to 18% and 24%, depending on taxpayers' income brackets.

Nukajam stated that the current rates still give the UK a competitive edge over jurisdictions like Spain (with a top rate of 28%) and France (where large crypto holdings exceeding €1.3 million/$1.5 million were recently voted to be classified as "non-productive wealth"). However, she suggested the UK could learn from Germany's tax policy on long-held assets—where cryptocurrencies held for over a year qualify for tax exemption.

She added that if the UK aims to achieve its ambition of becoming a cryptocurrency hub, favorable tax policies and a robust, interoperable regulatory framework aligned with other jurisdictions are essential.