Investment Bank Chair Proposes Crypto Tax to Boost UK Stock Market Growth

In a recent statement, Lisa Gordon, chair of investment bank Cavendish, proposed that the UK should implement a tax on cryptocurrency transactions to shift investor attention back to local stock markets.

She raised concerns over the growing trend of young people investing primarily in crypto, noting that more than half of individuals under 45 years of age own digital assets but lack investments in traditional equities.

Gordon suggests that the UK could reduce stamp duties on shares listed on the London Stock Exchange and apply a similar tax to crypto purchases.

By doing so, she believes the government could encourage more people to invest in UK companies, which would benefit the country’s economy. She emphasized that equities offer more direct contributions to growth, as they provide capital to businesses, foster innovation, and generate taxes.

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Her comments come in the context of an ongoing shift toward saving rather than investing, with many Brits prioritizing financial safety over long-term growth. The UK’s Financial Conduct Authority reported that around 12% of adults hold cryptocurrencies, but this trend, according to Gordon, could hinder long-term retirement planning.

Gordon is also part of a group of industry leaders working to revitalize the UK’s financial markets. Despite some recent setbacks, including a decrease in public company listings, she believes that the UK’s market remains an attractive option compared to other international markets like the US, which has seen more volatility.

Alexander Stefanov