Tougher Crypto Oversight in the UK: Insights from Gemini Exec

The recent UK budget and ongoing regulatory changes suggest a significant move towards stricter oversight of the cryptocurrency sector, according to Azariah Nukajam, the head of UK Compliance at the crypto exchange Gemini.

Key Takeaways

The UK's newest budget indicates a shift towards stricter oversight of the cryptocurrency sector.
No increase in tax rates on crypto transactions is viewed positively, reinforcing cryptocurrency's status as an alternative asset.
Current capital gains tax for crypto ranges from 18% to 24%, offering the UK a competitive edge over other European countries.
Regulatory focus is increasing on compliance and transparency, with a new CARF framework expected in 2026.
Improved regulations could benefit firms like Gemini and enhance their integration into the mainstream financial system.
The UK has an opportunity to become a leading jurisdiction for digital assets, provided it maintains favorable tax conditions.

Nukajam indicated that recent changes—including the Draft Statutory Instrument (SI), the launch of the Cryptoassets Order in May 2025, and the upcoming CARF tax-transparency regime—illustrate the UK's commitment to creating a “traditional finance”-style regulatory framework for cryptocurrencies.

No Tax Increases: A Positive Development

The budget announcement confirmed that tax rates on crypto transactions will remain unchanged. Nukajam welcomed this news, stating that acknowledging crypto as “any other asset class” reinforces its potential as a long-term alternative investment.

Currently, crypto in the UK is subject to capital gains tax rates ranging from 18% to 24%, depending on an individual's income bracket. Nukajam emphasized that this positions the UK favorably compared to some European countries, such as Spain, where rates can soar up to 28%, and France, where recent legislation classifies high-value crypto holdings over €1.3 million as “unproductive wealth,” irrespective of profit generation.

Emphasis on Compliance and Transparency

Even with no changes in tax rates, Nukajam noted a strong commitment to compliance from regulators. The HMRC has intensified the issuance of warning letters to individuals suspected of underreporting cryptocurrency tax obligations. Additionally, the anticipated CARF framework—set to be implemented in 2026—will significantly enhance government oversight of crypto transactions.

“The government’s focus is on sealing tax loopholes and elevating reporting and compliance standards within the crypto arena,” she said.

UK Aims to Become a Global Crypto Leader

Nukajam suggested that robust regulatory frameworks could ultimately support regulated firms like Gemini, enabling them to merge seamlessly into the mainstream UK financial landscape and instill confidence among both institutional and retail investors.

“Building this environment will allow regulated crypto companies like Gemini to position themselves within mainstream UK finance,” she noted, emphasizing Gemini’s long-standing commitment to compliance and security as advantageous in facing new regulations.

She expressed optimism that the UK can carve out a leading position in the digital assets space, provided it sustains favorable tax conditions and aligns its regulatory stance with other global markets. Nukajam pointed out Germany’s tax exemption for cryptocurrencies held for more than one year as a potential model that the UK could adopt to promote long-term investments.