Cavendish Investment Bank Chair Calls for Crypto Tax in the UK to Boost Economy

She argues that such a move could help redirect investments into local stocks, thereby contributing to the country’s economic growth. Gordon expressed concern that more than half of the UK’s under-45 population owns cryptocurrencies, yet fewer are investing in traditional equities.

Redirecting Investment from Crypto to Stocks

In an interview with The Times, Gordon emphasized the need for a crypto tax to encourage individuals to invest in the London Stock Exchange, particularly local companies. By implementing crypto taxation and reducing the stamp duty on equities, Gordon believes the UK can stimulate more investment in its domestic stock market.

Her proposal includes lowering the current 0.5% stamp duty on shares listed on the London Stock Exchange, which she believes would incentivize more people to invest in British businesses. This could not only boost stock market activity but also foster economic growth and job creation across the country.

Crypto as a “Non-Productive Asset”

Gordon criticized cryptocurrencies, describing them as “non-productive assets” that do not contribute to economic growth. In contrast, she pointed out that equities help generate capital for businesses, supporting innovation, employment, and tax revenue. She believes this system is a vital part of the social contract and should be encouraged.

Her stance on crypto taxation stands in stark contrast to policies in countries like the US, South Korea, and El Salvador, where governments are increasingly supportive of crypto growth. In the US, for example, former President Donald Trump signed an executive order to establish a strategic Bitcoin reserve.

Challenges Facing the UK Stock Market

Gordon’s comments come at a time when the UK stock market is facing significant challenges. A report from consulting firm EY revealed that the London Stock Exchange had one of its slowest years, with only 18 companies being listed in 2024, down from 23 in the previous year. Meanwhile, 88 companies were delisted or moved off the exchange.

Despite these challenges, Gordon remains optimistic about the UK’s stock market. She believes the UK is a “safe haven” for stocks, especially when compared to the volatile US market, and that crypto taxation could provide the push needed to revive the market and stimulate investment.

Divergent Approaches to Crypto Taxation

Gordon’s call for crypto taxation in the UK contrasts sharply with the ongoing debate in the US, where discussions around eliminating crypto taxes have gained traction. As countries around the world continue to navigate their approaches to cryptocurrency regulation, Gordon’s proposal highlights the differing perspectives on how to manage digital assets in the context of broader economic goals.

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