The UK should begin taxing crypto purchases in a bid to sway Britons to invest in local stocks, which could boost the country’s economy, says the chair of investment bank Cavendish, Lisa Gordon.

“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon told The Times in a March 23 report. “I would love to see stamp duty cut on equities and applied to crypto.”

Currently, the UK lumps a 0.5% tax on shares listed on the London Stock Exchange, the country’s largest securities market, which brings in around 3 billion British pounds ($3.9 billion) a year in tax revenue.

Gordon added that a cut could sway people to put their savings into shares of local companies, which could then spark other firms to go public in the UK and help the economy.

In comparison, she called crypto “a non-productive asset” that “doesn’t feed back into the economy.”

“Equities provide growth capital to companies that employ people, innovate and pay corporation tax. That is a social contract. We shouldn’t be afraid of advocating for that.”

The country’s Financial Conduct Authority said in November that crypto ownership rose to 12% of adults, equivalent to around 7 million people. A majority of crypto owners, 36%, were under the age of 55 years old.

Gordon said that many had “shifted to saving rather than investing,” which she claimed “is not going to fund a viable retirement.”

A 2022 FCA survey found that 70% of adults had a savings account, while 38% either directly held shares or held them through an account allowing nearly 20,000 British pounds ($26,000) of tax-free savings a year — around three in four 18-24 years olds held no investments.

But in a follow-up survey, the regulator reported that in the 12 months to January 2024, the cost of living crisis had seen 44% of all adults either stop or reduce saving or investing, while nearly a quarter used savings or sold their investments to cover day-to-day costs.

Gordon is a member of the Capital Markets Industry Taskforce, a group of industry executives aiming to revive the local market, which Cavendish would benefit from as it advises companies on how to navigate possible public offerings.

Related: Will new US SEC rules bring crypto companies onshore?

Consulting giant EY reported in January that the London stock market had one of its “quietest years on record,” with just 18 companies listing last year, down from 23 in 2023.

At the same time, EY said 88 companies delisted or transferred from the exchange, with many saying they moved due to “declining liquidity and lower valuations compared to other markets” such as the US.

However, Gordon claimed the UK is a “safe haven” compared to markets such as the US, which has lost trillions of dollars in its stock markets due to President Donald Trump’s tariff threats and fears of a recession.

Crypto markets have also slumped alongside US equities, with Bitcoin (BTC) trading down 11% over the past 30 days and struggling to maintain support above $85,000 since early March.

In the past 24 hours, at least, Bitcoin is up 2%, trading around $85,640.

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