U.K. Finance Minister Rachel Reeves on Wednesday announced her party's first U.K. budget in more than a decade. According to Suzanne Morsfield, policy advisor at trade association CryptoUK, she said the prospect of Reeves raising capital gains tax above 28 percent would hit around 5 million U.K. cryptocurrency holders particularly hard. Capital gains tax refers to gains made from investments in assets such as stocks or real estate, and it affects a very small number of people in the UK. However, Morsfield said that almost all crypto investors will be affected because the main way crypto assets are taxed is under the capital gains regime. Morsfield pointed out that data from the UK's Financial Conduct Authority shows that 63% of UK 5 million cryptocurrency owners hold cryptocurrencies worth £500 or less, with an average holding of £1,600.