UK Should Tax Crypto To Boost Economy, Says Cavendish Bank Chair

Cavendish Investment Bank chair Lisa Gordon advocates for imposing taxes on UK crypto purchases in a bid to boost the country’s economy. Gordon finds it alarming that over half of the country’s young citizens own crypto, but not equities. By implementing crypto taxation in the UK, Gordon intends to redirect investments into local stocks, fostering economic growth.

UK To Implement Tax on Crypto: Insights

According to The Times report, investment bank Cavendish Chair Lisa Gordon underscored the crypto taxation significance in the UK. Gordon posited that the UK should implement crypto taxation to redirect Britons to invest in local stocks, thereby bolstering the country’s economic growth.

Commenting on the country’s massive crypto investments, Gordon stated:

It should terrify all of us that over half of under-45s own crypto and no equities. I would love to see stamp duty cut on equities and applied to crypto.

How To Redirect Investments Into Stocks?

Notably, the Cavendish bank chair believes that a significant reduction in the 0.5% on shares listed on the London Stock Exchange could encourage investments in local stocks. This could encourage people to invest in local companies, fostering economic growth and job opportunities. The UK crypto taxation and the reduced stock tax could boost the economic growth, stated Gordon.

Currently, the UK tax revenue generates around 3 billion British pounds ($3.9 billion) annually. If this tax is reduced, it could sway people to invest their savings in local companies.

Meanwhile, Gordan views cryptocurrencies as a “non-productive asset” that doesn’t contribute to the economy’s growth. In contrast, equities provide growth capital to companies that employ people, innovate, and pay corporation tax. According to her, this is a social contract that should be advocated for.

Interestingly, Gordon’s criticism contradicts other countries like the US, South Korea, and El Salvador’s increasing efforts to foster crypto growth. Recently, US President Donald Trump signed an executive order to establish a strategic Bitcoin reserve.

UK Stock Market Faces Challenges

Significantly, consulting giant EY reported that the London stock market saw one of the slowest years. Reportedly, only 18 companies were listed on the London stock market last year, marking a significant decline from 23 in 2023.

At the same time, 88 companies were delisted or transferred from the exchange. Despite these unfavorable conditions, Gordon remains optimistic about the UK’s stock market growth. She describes the UK as a “safe haven” for the stock market compared to the volatile US market.

Gordon’s statements come amidst the US’ diverse approach to crypto taxation. In contrast to Gordon’s idea of the UK crypto taxation, the US is currently discussing the possibilities of zero crypto tax.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.