UK should tax crypto buyers to boost stock investing, economy, says banker
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.
A quarter of 18-25 year olds and a third of 25-44 year olds held any investment in 2022. Source: FCA
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.
Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
Politics
Starmer and Zelenskyy discuss ending Russia’s ‘brutal war’ – as Putin says says he is open to bilateral talks on longer ceasefire
Sir Keir Starmer and Volodymyr Zelenskyy spoke about ending Russia’s “brutal war” on Ukraine in their latest phone call on Easter Monday, as Vladimir Putin said he was open to bilateral talks.
The prime minister and Ukrainian president spoke on Monday afternoon, when Sir Keir “reiterated his iron-clad support for Ukraine“.
A Downing Street spokesperson added that the prime minister “said that the UK supports Ukraine’s calls for Russia to commit to a full ceasefire and that now is the time for Putin to show he is serious about ending his brutal war”.
“They discussed the latest developments on the Coalition of the Willing, and looked forward to further progress towards a just and lasting peace,” the spokesperson added.
Mr Zelenskyy later said on social media that he had a “good and detailed conversation” with the prime minister, and added Ukrainian officials will be in London for talks on ending the war with Russia on Wednesday.
“We are ready to move forward as constructively as possible, just as we have done before, to achieve an unconditional ceasefire, followed by the establishment of a real and lasting peace,” he added.
The Ukrainian president added that the 30-hour Easter truce, which both Kyiv and Moscow accuse the other of violating, showed that Russia “are prolonging the war”.
It comes as Mr Putin proposed bilateral talks with Ukraine on a longer ceasefire, which would mark the first time Russia held such talks since a failed peace deal soon after the invasion in 2022.
Speaking to a state TV reporter, the Russian president said: “We always have a positive attitude towards a truce, which is why we came up with such an initiative (the Easter truce), especially since we are talking about the bright Easter days.”
When asked about Mr Zelenskyy’s calls to extend the 30-hour ceasefire into a 30-day pause on civilian targets, he added: “This is all a subject for careful study, perhaps even bilaterally. We do not rule this out.”
The Ukrainian president said on Sunday evening that the Russian army had “violated Putin’s ceasefire more than 2,000 times” during the day, and accused Russia of “failing” to “uphold its own promise of a ceasefire”.
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From Saturday: Why Putin offered an Easter truce?
It also comes after Donald Trump has said he hopes Russia and Ukraine “will make a deal this week,” after he and his secretary of state Marco Rubio warned that the US will walk away from efforts to broker a peace deal unless there are clear signs of progress soon.
The US president said on his Truth Social platform that both countries would “start to do big business” with the US after ending the war.
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Last month, Ukraine accepted Mr Trump’s proposal for a 30-day truce, but Mr Putin refused to back a full 30-day ceasefire, saying crucial issues of verification had not been sorted out.
He then said he would agree not to target Ukraine’s energy infrastructure. However, both sides have accused each other of breaking the moratorium on attacks on energy targets and at sea.
Paul Atkins has officially been sworn in as the 34th Chairman of the Securities and Exchange Commission.
The April 21 announcement comes nearly two weeks after Atkins’ position was confirmed by the US Senate in a 52-44 vote on April 9.
“I am honored by the trust and confidence President Trump and the Senate have placed in me to lead the SEC,” Atkins said in a statement.
“As I return to the SEC, I am pleased to join with my fellow Commissioners and the agency’s dedicated professionals to advance its mission to facilitate capital formation; maintain fair, orderly, and efficient markets; and protect investors.”
Atkins is widely expected to lead a more crypto-friendly SEC than former chair Gary Gensler under the Biden administration.
He previously served as an SEC commissioner between 2002 and 2008.
This is a developing story, and further information will be added as it becomes available.
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