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News

UK Proposal for Cryptocurrency Purchase Tax to Encourage Stock Investments

2 mins mins
Key Points:

  • UK proposes tax on cryptocurrency purchases led by Lisa Gordon.
  • Aims to redirect investment towards the domestic stock market.
  • Potential impact on financial growth and economic productivity.

uk-proposal-for-cryptocurrency-purchase-tax-to-encourage-stock-investments
UK Proposal for Cryptocurrency Purchase Tax to Encourage Stock Investments

On March 24, UK investment bank Cavendish, led by Lisa Gordon, proposed a tax on cryptocurrency purchases to promote stock investments.

The proposal aims to redirect funds to UK stocks, potentially boosting economic growth amid the widespread under-45 cryptocurrency ownership.

UK Eyes Cryptocurrency Tax to Boost Stock Market

Gordon suggests implementing a cryptocurrency transaction tax similar to the existing 0.5% stock stamp duty. This would encourage investment in the London Stock Exchange, contributing substantial revenue. More than half of Britons under 45 currently favor cryptocurrencies.

Reallocating some capital into stocks could boost economic productivity. Gordon calls cryptocurrency non-productive, advocating for investments that drive growth. The proposal arises amid challenges like the cost of living crisis curbing investment.

Responses have varied, highlighting differing views on cryptocurrency’s value. Some support the move to bolster innovative companies, others argue it could hinder crypto’s growth. No official government statements have been released yet.

Tax Proposal Raises Debates on Economic Strategy

Did you know?
In 1963, the UK’s capital gains tax was introduced to curb unchecked investment growth in speculative markets, drawing parallels to today’s cryptocurrency tax proposal.

Experts debate the proposal’s potential gains for fiscal policy and market dynamics. Historically, tax measures have shifted investor behavior, but the tax’s effectiveness remains uncertain. Financial analysts advise caution, as cryptocurrency markets may react unpredictably. The move might strengthen regulatory frameworks while addressing concerns about crypto’s impact on traditional markets.

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Avatar of John Kojo Kumi

John Kojo Kumi

24 March 2025, 11:28:57 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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