UK Investment Bank Chair Calls for Crypto Tax to Boost Local Stock Market

Lisa Gordon, chair of UK investment bank Cavendish, has called on the British government to introduce a tax on cryptocurrency purchases in an effort to encourage citizens to invest in local equities. In a March 23 interview with The Times, Gordon argued that the growing preference for crypto over traditional stock investments poses a threat to the UK economy.

“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon said. She proposed applying stamp duty to crypto transactions—similar to the 0.5% tax currently levied on shares listed on the London Stock Exchange (LSE)—while simultaneously reducing the same tax on equities.

Currently, the LSE stamp duty generates around £3 billion ($3.9 billion) in annual tax revenue. Gordon believes that by reducing this tax and shifting the burden to crypto, more people would be incentivized to invest in local companies, boosting capital markets and potentially prompting more firms to go public.

Concerns Over Crypto’s Economic Impact

Gordon dismissed cryptocurrencies as “non-productive assets” that fail to contribute to the broader economy. In contrast, she emphasized that equities fund companies that “employ people, innovate, and pay corporate taxes”, reinforcing the economic social contract.

Her remarks come as crypto ownership in the UK continues to rise. According to the Financial Conduct Authority (FCA), around 12% of British adults—roughly 7 million people—now own crypto, with the majority being under 55 years old.

The FCA also revealed that 44% of UK adults reduced or stopped saving or investing altogether in the 12 months leading up to January 2024, largely due to the cost-of-living crisis. Meanwhile, nearly a quarter of Brits used their savings or sold investments to cover daily expenses.

In November 2024, Bloomberg reported that the FCA was planning to finalize its crypto regulation laws by 2026, with key focus on trading platforms, crypto lending, and stablecoins.

Slumping Markets

Gordon’s plea comes at a time when the London stock market is struggling to attract new listings. According to consulting firm EY, only 18 companies listed on the LSE in 2024, down from 23 the previous year. In contrast, 88 companies delisted or transferred from the exchange, citing declining liquidity and lower valuations compared to rival markets like the US.

While Gordon acknowledged the challenges, she still believes the UK offers stability compared to the US, which she claims has become more volatile due to former President Trump’s tariff threats and recession fears.