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
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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%…