Lisa Gordon, the Chairman of the UK investment bank Cavendish, has recommended introducing a stamp tax on cryptocurrency transactions like the 0.5% tax on the London Stock Exchange(LSE). “I would love to see stamp duty cut on equities and applied to crypto”, said Gordon to The Times in a report. The sole reason for her proposal is to alert investors to focus more on stocks/equity rather than investing in cryptocurrencies that have no intrinsic value to the UK economy.
The Chairman denoted crypto as a “non-productive asset” and explained that these assets do not feed back into the economy, compared to stocks.
Her proposal also specified that over half of Britons under 45 own crypto, not equities. That said, a tax on crypto would steer investors to concentrate on stocks of local companies.
Gordon said that advocating for investing in equities should not be feared, adding:
“Equities provide growth capital to companies that employ people, innovate, and pay corporation tax. That is a social contract.” As the cost of living increased, many people have downsized their crypto investments, making it even more crucial to direct the limited available capital towards investments (stocks) that promote growth.
Meanwhile, the Financial Conduct Authority (FCA), the UK’s financial regulatory body, reported that, as of November 2024, the appetite for crypto has peaked in the UK, with 12% of adults owning cryptocurrencies. Moreover, the FCA has taken action to make the crypto market safer by finding companies illegally promoting crypto assets to UK customers.
