UK Investors Finally Get Tax-Free Crypto Access Via ISAs And Pensions
A sign on the window of the Financial Conduct Authority (FCA) headquarters. Photographer: Hollie Adams/Bloomberg
© 2023 Bloomberg Finance LP
After four years of regulatory delays that pushed UK retail investors toward risky offshore exchanges and leveraged treasury schemes, the FCA’s crypto ETN approval finally delivers what investors wanted: legitimate crypto exposure in tax-advantaged wrappers.
The Four-Year Tax Efficiency Gap
The January 2021 ban on crypto ETNs was a misguided attempt to protect retail consumers from highly speculative cryptoassets (Bitcoin traded at $40k at the time). The FCA wanted to protect retail investors from volatile, poorly understood assets. But prohibition created a more dangerous problem: it forced the 12%…
