On the Record by Bitcoin Policy UK

Bitcoin Policy UK

The UK's Bitcoin policy conversation On the Record by Bitcoin Policy UK brings the organisation’s latest work and thinking to audio.  Listen to policy papers, consultation responses, research briefings, commentary, and interviews with members of the BPUK team.Covering Bitcoin regulation, CBDCs, financial freedom, digital finance trends, and more, the podcast helps policymakers, professionals, and those exploring Bitcoin stay informed on the issues shaping its future in the UK and beyond. Learn more at https://bitcoinpolicy.uk/

  1. Response to HM Revenue and Customs Call for Evidence: Taxation of Stablecoins

    Jun 5

    Response to HM Revenue and Customs Call for Evidence: Taxation of Stablecoins

    In this episode we present an audio version of Bitcoin Policy UK’s response to HMRC’s Call for Evidence on the taxation of stablecoins, originally published on 6 May 2026.  The paper argues that if HMRC recognises stablecoins as payment instruments deserving lighter tax treatment, then the same logic should also apply to Bitcoin when it is used for everyday payments. 🔍 The Core Problem: Bitcoin Payments Trigger Capital Gains Tax Under current UK rules, every time someone spends Bitcoin, even buying a coffee, it can create a capital gains tax (CGT) event. That means users may need to:  Calculate sterling-equivalent acquisition and disposal values  Track transaction histories  Maintain detailed records  Potentially report activity to HMRC Bitcoin Policy UK argues that this creates:  Significant administrative friction  Deterrence to real-world payment usage  Very little meaningful tax revenue ⚖️ The Central Argument: Treat Payment Activity Like Payment Activity The submission argues that Bitcoin should not automatically be treated as a speculative investment when it is functioning as a medium of exchange. BPUK proposes a usage-based framework:  Retail payments → treated similarly to money/foreign currency  Speculative trading → taxed normally  Long-term investment → standard CGT rules apply The key point is that function should matter more than asset category. 💡 Why Bitcoin Qualifies The paper argues that Bitcoin already operates as a meaningful payment network in the UK:  Bitcoin accounts for a significant share of UK crypto payments activity  Lightning Network infrastructure enables instant, low-cost settlement  UK businesses already use Bitcoin payment processors and merchant networks The consultation’s rationale for stablecoin payment relief therefore applies equally to Bitcoin. 📉 “Regulatory Theatre” and the Bed-and-Breakfasting Problem One of the paper’s strongest claims is that the current regime creates complexity without generating meaningful revenue. Many users already lawfully:  Spend Bitcoin  Immediately repurchase the same amount  Reset their cost basis (“bed-and-breakfasting”) As a result:  HMRC collects very little CGT from genuine payment activity  Users still face substantial compliance burdens BPUK argues this is effectively “regulatory theatre”. 🌍 International Competition The paper also highlights how other jurisdictions are moving more aggressively:  The Czech Republic eliminated CGT on long-held Bitcoin  Germany exempts crypto gains after certain holding periods  Several US states have passed Bitcoin rights legislation The warning is clear - without reform, the UK risks losing:  Talent  Capital  Innovation  Payment infrastructure leadership 📈 The “Velocity Multiplier” A major economic argument in the submission is the idea of a velocity multiplier. BPUK argues that removing CGT friction would:  Increase transaction frequency  Encourage merchant adoption  Expand economic activity  Ultimately increase VAT receipts The paper suggests this could more than offset any minimal reduction in CGT collection. 🏛️ Policy Recommendation Bitcoin Policy UK strongly supports:  A full CGT exemption for cryptoasset payments used for goods and services  A framework based on economic function, not issuer or denomination  Inclusion of Bitcoin alongside stablecoins where genuine payment utility exists The submission warns that limiting relief only to sterling stablecoins would create artificial market distortions and ignore existing Bitcoin payment ecosystems. 🧠 The Bottom Line This paper frames the issue as bigger than tax simplification. According to BPUK, the UK now faces a strategic choice:  Preserve outdated treatment built around speculative assumptions, or  Recognise the emergence of digital payment infrastructure and position Britain as a global leader in crypto payments policy The future of payments may be digital. The question is whether the UK intends to lead or follow. 📄 Read the full written paper here: 👉  Response to HMRC Call for Evidence: Taxation of Stablecoins To find out more about Bitcoin Policy UK's work and how you can get involved, visit: https://bitcoinpolicy.uk/

    10 min
  2. Response to FCA Consultation Paper - Regulating Cryptoasset Activities

    Feb 20

    Response to FCA Consultation Paper - Regulating Cryptoasset Activities

    In this episode, we present an audio version of Bitcoin Policy UK’s response to FCA Consultation Paper CP25/40 on the regulation of cryptoasset activities, originally published on 29 January 2026. This submission sets out BPUK’s position on how the UK should regulate cryptoassets and, crucially, how it should avoid category errors that treat Bitcoin as interchangeable with issuer-driven tokens. 🔍 Core Argument: Avoid the Category Error A central theme of the submission is that Bitcoin is not interchangeable with the wider “cryptoasset” sector. Bitcoin: Has no issuer, foundation or controlling entityCannot alter its monetary policy by committeeEnables peer-to-peer settlement without intermediariesFunctions as a form of digital commodity moneyMany other cryptoassets, by contrast, are issuer-driven products with insider allocation, governance discretion and venture-style backing. Regulatory design must reflect this distinction. 🧭 The Perimeter Boundary That Matters BPUK urges the FCA to draw a hard line between: Custodial/intermediary activity (where regulation is effective and appropriate), andNon-custodial infrastructure such as wallet software, node operators, miners and open-source developers (where firm-style obligations are infeasible or nonsensical).The framework will succeed or fail based on whether it respects this boundary. 🏛️ Key Policy Themes The response covers a targeted set of consultation questions, focusing on areas where regulatory design has the greatest impact: 1️⃣ Retail Protection BPUK supports strong retail protections where harm concentrates: Custody failuresLeverage and lending risksConflicts of interestIssuer-driven token promotion cyclesHowever, it cautions against treating Bitcoin as equivalent to centrally issued tokens when applying restrictions. 2️⃣ Best Execution & Price Source Rules The paper warns against overly rigid UK-only pricing or execution requirements that could: Reduce access to global liquidityWorsen spreads for UK consumersFragment marketsPrinciples-based standards focused on outcomes are preferred. 3️⃣ Conflicts of Interest & PFOF BPUK strongly supports tighter controls on: Internalised tradingToken listing conflictsPayment for order flow (PFOF)Retail users must not become monetised inventory. 4️⃣ Staking & DeFi Where a clear controlling person exists, regulation is appropriate. But “protocol regulation” by default risks: Capturing open-source infrastructureImposing unenforceable obligationsChilling domestic innovationDefinitions of “control” must focus on custody, discretion, and unilateral power, not vague influence. 5️⃣ Tax & Lending Neutrality The response also references ongoing tax issues around DeFi lending and staking, arguing that: Current tax treatment does not reflect economic substanceCryptoasset lending is treated less favourably than traditional securitiesThe UK risks falling behind without reform📄 Read the full written paper here: 👉  Response to FCA Consultation Paper CP25/40 To find out more about Bitcoin Policy UK's work and how you can get involved, visit: https://bitcoinpolicy.uk/

    28 min
  3. Response to HM Treasury on Cryptoassets Regulation Part 2

    Jan 30

    Response to HM Treasury on Cryptoassets Regulation Part 2

    In this episode, we present an audio version of Part 2 of Bitcoin Policy UK’s response to HM Treasury on Cryptoassets Regulation, originally published on 26 April 2023. The paper responds to a number of questions raised by HM Treasury relating to cryptoasset regulation, environmental impact, and the role of Bitcoin mining within the UK economy and energy system. What this episode covers In this episode, Bitcoin Policy UK sets out: What Bitcoin is, and why its permissionless, energy-secured design distinguishes it from other digital assetsWhy Proof of Work is fundamental to Bitcoin’s monetary policy, security, and censorship resistanceHow common claims about Bitcoin’s environmental impact are often misunderstood or incorrectly framedWhy metrics such as “energy per transaction” are misleading when applied to BitcoinBitcoin mining and energy use The paper explains: How Bitcoin’s energy use adjusts dynamically based on network conditionsWhy the Cambridge Bitcoin Electricity Consumption Index is the most reliable source for estimating Bitcoin’s energy usageHow Bitcoin mining compares to other industries in terms of total global energy consumptionIt also highlights that Bitcoin mining currently uses a high and increasing proportion of sustainable energy, with estimates approaching 60% at the time of publication. Environmental mitigation and net-zero opportunities The submission explores two areas where Bitcoin mining could support UK climate and energy objectives: Methane mitigationUsing Bitcoin mining to capture and monetise methane from landfills and flaringReducing emissions from one of the most potent greenhouse gasesMaking mitigation infrastructure economically viable for landfill operators and local authoritiesRenewable grid stabilisationBitcoin miners as highly flexible electricity consumersActing as buyers of first and last resort for renewable generationSupporting the economic viability of wind, solar, and other renewable projectsPolicy implications The paper argues that: Bitcoin mining should be assessed on evidence, not assumptionsRegulation should recognise Bitcoin’s unique characteristics rather than treating it as a generic cryptoassetThe UK has an opportunity to support innovation by aligning Bitcoin mining with renewable energy and methane reduction strategiesThe submission concludes by encouraging HM Treasury to explore targeted incentives and further research into Bitcoin mining’s potential role in achieving the UK’s net-zero objectives. 📄 Read the full written paper here: 👉  Response to HM Treasury on Cryptoassets Regulation Part 2 To find out more about Bitcoin Policy UK's work and how you can get involved, visit: https://bitcoinpolicy.uk/

    18 min
  4. Response to HM Treasury on Cryptoassets Regulation Part 1

    Jan 23

    Response to HM Treasury on Cryptoassets Regulation Part 1

    In this episode, we present an audio version of Part 1 of Bitcoin Policy UK’s response to HM Treasury on Cryptoassets Regulation, originally published on 26 April 2023. This submission sets out a clear and principled framework for how cryptoassets should be regulated in the UK, starting with a crucial distinction that policymakers too often ignore: Bitcoin is fundamentally different from all other cryptoassets. The paper argues that regulation should focus on activities and intermediaries, not the Bitcoin protocol itself, and warns that poorly targeted rules risk being both unenforceable and economically damaging. 🔑 Key themes covered in this episode Why Bitcoin must be treated separately from “crypto” Bitcoin has no issuer, no controlling mind, and no governance mechanism that regulators can influence, unlike almost every other token.Decentralisation and enforceability Why attempting to regulate Bitcoin nodes or miners is both disproportionate and practically impossible.Preventing customer harm where it actually occurs The case for prioritising regulation of exchanges, custodians, and token listings, not peer-to-peer infrastructure.Mining, nodes, and regulation overreach Why running Bitcoin software is not a financial activity and should not fall within the regulatory perimeter.Territorial scope and reality checks How Tor, VPNs, and global node distribution undermine attempts at jurisdiction-based enforcement.Stablecoins, lending platforms, and real risks Lessons from Celsius and other failures, and why transparency, reserves and disclosure matter.Financial promotions and ‘positive frictions’ Why the UK risks driving compliant firms offshore while disadvantaging domestic businesses.Bitcoin as commodity money, not a financial liability How Bitcoin differs from bank money, central bank money, and most digital assets.📄 Read the full written paper here: 👉  Response to HM Treasury on Cryptoassets Regulation Part 1 To find out more about Bitcoin Policy UK's work and how you can get involved, visit: https://bitcoinpolicy.uk/

    27 min
  5. Response to the Bank of England and HM Treasury on the Digital Pound

    Jan 16

    Response to the Bank of England and HM Treasury on the Digital Pound

    In this episode, we present an audio version of Bitcoin Policy UK’s response to the Bank of England and HM Treasury on the Digital Pound, originally published on 31 May 2023. This paper sets out why a retail CBDC represents a fundamental shift in the relationship between citizens and the state, raising serious concerns around privacy, financial surveillance, programmability, and democratic oversight. Rather than modernising money, the digital pound risks embedding new forms of control into the financial system while failing to solve the problems it claims to address. 🔍 What This Episode Covers What the digital pound actually is, and how it differs from cash and commercial bank moneyWhy privacy safeguards are insufficient, even when framed as “proportionate” or “trusted”The risks of programmability, including restrictions on spending and behavioural nudgingWhy intermediated models don’t remove state power, they merely obscure itThe danger of normalising financial surveillance through everyday paymentsHow a CBDC could crowd out private innovation rather than support itWhy existing payment systems already meet most stated policy goalsThe importance of preserving cash, choice, and exit options⚠️ Key Arguments from Bitcoin Policy UK A retail CBDC is not a neutral technical upgrade, it is a political and constitutional changePromises of privacy are policy choices, not technical guaranteesOnce built, CBDC infrastructure is easy to repurpose and hard to roll backFinancial freedom depends on the ability to transact without constant monitoringThe UK should focus on competition, open standards, and cash resilience, not centralised digital money🧠 Why This Matters As governments explore CBDCs globally, decisions made now will shape the future of money for decades. This submission argues that the digital pound risks undermining trust, freedom, and resilience, precisely at a time when those qualities matter most. Bitcoin Policy UK urges policymakers to think carefully about second-order effects, long-term incentives, and the preservation of individual autonomy in the financial system. 📄 Read the full written paper here: 👉  Response to the Bank of England and HM Treasury on the Digital Pound To find out more about Bitcoin Policy UK's work and how you can get involved, visit: https://bitcoinpolicy.uk/

    47 min
  6. My Two Sats UK Quantum Fear vs Bitcoin Reality Freddie New Cuts Through the Noise

    Jan 9

    My Two Sats UK Quantum Fear vs Bitcoin Reality Freddie New Cuts Through the Noise

    This episode was originally published on My Two Sats by Roxom TV on 21 November 2025. https://www.youtube.com/watch?v=qpIWjSFWNgM Bitcoin headlines are screaming about “quantum threats,” “treasury disasters,” and “government control.” But what’s real — and what’s propaganda? Freddie New, CEO of B Hodl and Chief Policy Officer at Bitcoin Policy UK, joins Susie Violet Ward to dismantle the fear, break down the U.S. Bitcoin tax revolution, and expose why quantum computing won’t crack Bitcoin anytime this century. From Lightning Network yield and node infrastructure, to Nakamoto Holdings’ accounting chaos, to the UK falling a decade behind the U.S. on Bitcoin policy — this episode cuts through the noise with clarity, data, and brutal honesty. Subscribe to Roxom TV for more Bitcoin news & crypto culture insights. 00:00 – Bitcoin Through a New Lens 👁️ | Show Opens 02:00 – Lightning Yield: 6% and Rising ⚡ | Real Numbers 05:10 – Treasury Companies Exposed 🏢 | What’s Real vs Hype 08:32 – The U.S. Bitcoin Tax Act 🇺🇸 | A Strategic Pivot 11:40 – Why the UK Is a Decade Behind 🇬🇧 | Hard Truths 15:05 – Strategic Reserves & Inflation Fallout 📉 | Freddie Explains 18:15 – Quantum Panic in the Headlines 🛑 | What’s Actually True 20:42 – Can Quantum Crack Bitcoin? 🧠 | Freddie’s Breakdown 24:18 – Banks, Governments & Weak Security First 🏦 | Bigger Targets 27:30 – Y2K vs Quantum 🚨 | Lessons From History 31:40 – Treasury Disasters: Nakamoto Holdings 📊 | What’s Happening 35:55 – Pump-and-Dump Companies 🚫 | Freddie’s Warning 38:12 – Visa, CBDCs & Digital ID 🔒 | Why Bitcoin Matters 41:05 – Australia’s Social Media Ban 👶 | Surveillance Concerns 45:10 – How Parents Can Actually Protect Kids 📱 | No Easy Fix TRADE BITCOIN TREASURY STOCKS, DENOMINATED IN BITCOIN. EARLY ACCESS HERE: https://roxom.com/treasuries Social Media: Instagram  / roxomtv TikTok  / roxomtv X  / roxomtv The Beating Heart of Bitcoin And World News. 🔔 Follow BPUK Visit bitcoinpolicy.uk for more insights, briefings, and research on Bitcoin policy in the UK.

    49 min
  7. Wiston Capital A Conversation About Bitcoin - Concerns and Opportunity with Freddie New

    Jan 2

    Wiston Capital A Conversation About Bitcoin - Concerns and Opportunity with Freddie New

    This episode was originally published by Wiston Capital on 25 September 2025. https://bagster.substack.com/p/a-conversation-about-bitcoin-concerns A Conversation About Bitcoin - Concerns and Opportunity Charlie Erith talks to Freddie New, from Bitcoin Policy UK We recently hosted an enlightening fireside chat with Freddie New, co-founder of Bitcoin Policy UK. It was a fascinating and wide-ranging conversation which we’re delighted to share with you. And we had great questions from an engaged and financially literate audience. In the discussion, Freddie explores Bitcoin’s game-changing role in reshaping economies and governments. Key highlights include: Energy Efficiency & Grid Management: How Bitcoin mining can optimise power grids and drive sustainable energy innovations.Escaping Rising Debt: Bitcoin as a “lifeboat” in an era of ballooning national debts and fiat instability.Quantum-Resistant Security: Safeguarding against emerging threats like quantum computing.Stablecoins Demystified: Addressing common questions and the path forward for digital currencies.Bitcoin is attracting growing institutional interest. This conversation forms a part of Wiston Capital’s efforts to demystify this important new asset. 🔔 Follow BPUK Visit bitcoinpolicy.uk for more insights, briefings, and research on Bitcoin policy in the UK.

    54 min
  8. Response to FCA on Cryptoasset Financial Promotions

    12/26/2025

    Response to FCA on Cryptoasset Financial Promotions

    In this episode, we present an audio version of Bitcoin Policy UK’s response to the FCA’s consultation  GC23/1 || PS23/6 on cryptoasset financial promotions, originally published on 5 August 2023. You’ll hear a clear explanation of why the proposed rules risk misunderstanding Bitcoin, misclassifying it, and pushing consumers into harm’s way, the opposite of what good regulation should achieve.  🔍 What this episode covers In this spoken paper, we walk through the key arguments and evidence submitted to the FCA, including: 🔹 The FCA’s core mistake: treating all “cryptoassets” as the same The response explains why Bitcoin is fundamentally different - a protocol, a network, and a digital commodity with no issuer - and why the FCA’s “restricted mass market investment” label is logically and practically flawed. 🔹 Why miscategorising Bitcoin creates enforcement, logic, and consumer-protection problems From 24/7 global liquidity to permissionless use, the paper explains why Bitcoin simply doesn’t fit the Restricted Mass Market Investment (RMMI) framework. 🔹 The unintended consequences of the new rules Feedback from UK firms highlights how poorly-designed regulation could: Drive consumers toward offshore, unregulated providersIncrease customer harmUndermine UK competitivenessBurden compliant firms while bad actors flourish🔹 Why the current regulatory approach risks becoming paternalistic The FCA should protect consumers from misleading promotions, not decide what adults should invest in. 🔹 Why the FCA must distinguish between staking, borrowing/lending, and speculative yield schemes Lumping everything together obscures risks, confuses consumers, and creates regulatory blind spots. 🏛️ Key themes Bitcoin ≠ crypto.Regulation should focus on behaviour of firms, not assets themselves.Poorly conceived rules can be harmful, unenforceable, and counterproductive.Differentiation, clarity, and proportionality are essential, particularly for an asset as unique as Bitcoin.📄 Read the full written paper here: 👉  Response to FCA on Cryptoasset Financial Promotions To find out more about Bitcoin Policy UK's work and how you can get involved, visit: https://bitcoinpolicy.uk/

    42 min
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About

The UK's Bitcoin policy conversation On the Record by Bitcoin Policy UK brings the organisation’s latest work and thinking to audio.  Listen to policy papers, consultation responses, research briefings, commentary, and interviews with members of the BPUK team.Covering Bitcoin regulation, CBDCs, financial freedom, digital finance trends, and more, the podcast helps policymakers, professionals, and those exploring Bitcoin stay informed on the issues shaping its future in the UK and beyond. Learn more at https://bitcoinpolicy.uk/

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