More than half of UK adults under 45 hold crypto assets but no equities.
The FCA reported that 44% of UK adults reduced or stopped investing by January 2024.
Lisa Gordon proposes removing stamp duty on equities and applying it to cryptocurrency transactions.
An investment executive has proposed the introduction of a stamp duty on cryptocurrency purchases in the United Kingdom. Lisa Gordon, chair of Cavendish Investment Bank, stated that this measure could support domestic equity markets by discouraging crypto purchases among young adults. She shared these remarks during an interview with The Times on March 23.
Concerns Over Youth Investment Behavior and Stamp Duty Proposal
According to Gordon, a growing number of people under 45 in the UK now own cryptocurrency instead of equities. She stated that more than half of this age group holds crypto assets but not shares. Gordon pointed to this shift as a risk to the country’s financial future. She indicated that the trend moves savings away from the real economy.
Gordon proposed that the UK government place a stamp duty on crypto transactions while removing the existing 0.5% stamp duty on equities. The current stamp duty on shares traded on the London Stock Exchange raises approximately £3 billion annually. According to Gordon, redirecting this tax from equities to crypto could reshape how the public saves and allocates funds.
She described cryptocurrencies as non-productive assets that do not contribute to business growth, job creation, or revenue generation. She emphasized that equities are tied to business activity, which supports the wider economy through innovation and employment.
FCA Data Shows Decline in Equity Ownership
The Financial Conduct Authority (FCA) has reported that cryptocurrency ownership among UK adults stood at 12% as of November 2023. Around 36% of crypto holders are under 55 years old. Meanwhile, stock market participation continues to drop.
FCA data from 2022 showed that 70% of adults held savings accounts, but only 38% owned stocks. Among those aged 18 to 24, just 25% had any investment assets. The UK permits up to £20,000 in tax-free annual savings or investment.
From January 2023 to January 2024, the FCA reported that 44% of UK adults reduced or halted their investments. One in four residents used both savings and investment product sales to cover daily expenses.Gordon, a member of the Capital Markets Industry Taskforce, added that the UK market remains stable. She noted that the U.S. market has seen steep losses, which have affected crypto markets, including Bitcoin. Read MoreNews, Market News, NewsNow, Regulation News, Crypto market, cryptocurrency, Lisa Gordon, United Kingdom
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