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– Industry representatives praised some measures to support businesses, but expressed concern that increased fiscal and regulatory pressure could negatively impact the United Kingdom’s competitiveness in fintech and digital assets.

cryptocurrencies were not subject to additional taxation in the UK’s recent budget speech. However, the government continues to introduce stricter reporting and regulatory procedures in a bid to tighten control over the sector amid concerns about the attractiveness of jurisdictions.

In the Autumn Statement on Wednesday, U.K. Chancellor of the Exchequer Rachel Reeves refrained from further increasing capital gains tax, which affected crypto investors last year. She unveiled plans that include further fixing income tax thresholds, looming tax hikes on dividends, savings and property income, and new limits on pension deductions from wages. Reeves also outlined further steps to broaden the tax base and support government services.

The Autumn Statement serves as a mid-cycle budget update for the UK government, used to review forecasts and set policy direction ahead of the Spring Budget, in which the Chancellor usually announces key tax and spending decisions for the next financial year.

The head of Gemini’s UK compliance unit, Azaria Nukajam, was pleased with the decision. It’s good to see that taxes on crypto will not increase, which means cryptocurrencies will be treated like any other type of asset, ensuring their sustainability as alternative investments in the long term, she told The Block. However, Nukajam said recent legislative and regulatory initiatives, such as a bill proposing new rules for cryptocurrency companies, coupled with the budget announcement, suggest that tighter, more traditional financial oversight and tax transparency are on track.

Nukajam cited the introduction of the Crypto Asset Regulation in May, the increase in warning letters from HMRC (Her Majesty’s Revenue and Customs) to those suspected of non-payment, and the upcoming implementation of the Crypto Asset Reporting Framework (CARF) – a new global tax transparency system that will strengthen the monitoring and sharing of customer transaction data from 2026 – as evidence of the government’s intentions to close tax loopholes and raise reporting and compliance standards in the crypto sector as a whole.

She suggested that a more structured regulatory environment will be beneficial for companies that prioritize user protection and see regulation as part of the incorporation of cryptocurrencies into the mainstream UK financial system, which in turn will attract institutional interest and build consumer confidence.

The Budget announcement follows last year’s amendments to capital gains tax, which increased the rates for cryptocurrencies and other investment assets from 10% to 20% and from 18% to 24% respectively, depending on the taxpayer’s level of income.

ukajam believes these levels still give the UK an advantage over jurisdictions like Spain, where rates are as high as 28% , and France, which recently decided to classify large crypto assets over 1.3 million ($1.5 million) as

unprofitable wealth.

However, she believes that the UK could learn from Germany’s approach to long-term assets, where cryptocurrency can be tax-free after a year.

Ultimately, favorable tax policies and comparable, robust regulatory regimes harmonized with other jurisdictions are necessary if the UK is to realize its ambition to become a crypto hub, she added.