In a bold proposal that has sparked debate, a leading UK investment banker has called for taxing cryptocurrency purchases to redirect investor money into traditional stock markets. Lisa Gordon, chair of investment bank Cavendish, argues that this shift is essential to revitalizing London’s shrinking equity markets and strengthening the country’s economic future.
“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon warned in a recent interview with The Times.
Currently, the UK charges 0.5% stamp duty on London Stock Exchange-listed shares, generating nearly £3 billion annually. Gordon suggests cutting this duty on equities while imposing a similar tax on cryptocurrency purchases — a move she claims would nudge younger investors back into productive assets.
“Equities provide growth capital to companies that employ people, innovate, and pay corporation tax. That is a social contract. We shouldn’t be afraid of advocating for that,” she added.
In contrast, Gordon labeled crypto a “non-productive asset” that fails to feed economic growth.
UK’s Growing Crypto Obsession Raises Economic Concerns
Recent data from the Financial Conduct Authority (FCA) paints a clear picture — 12% of UK adults, roughly 7 million people, now own crypto. Among them, younger investors dominate, with 36% under the age of 55.
Worryingly, Gordon claims many are shifting from investment to saving behavior — a trend she argues threatens long-term financial security. “That’s not going to fund a viable retirement,” she warned.
A 2022 FCA survey revealed only 38% of adults owned stocks, while most young people avoided equities entirely highlighting the growing divide between traditional finance and digital assets.
The call to action comes amid a troubling slowdown in UK public listings. EY reported that only 18 companies listed on the London Stock Exchange last year one of the quietest years on record, while 88 companies delisted or moved abroad, citing low valuations and dwindling liquidity.
Meanwhile, global markets remain volatile. US stock markets have shed trillions in value amid tariff threats and recession fears. Crypto markets are also struggling, with Bitcoin down 11% this month and battling to hold above $85,000.
The Bigger Picture — Is Crypto Tax the Answer to Reviving UK Markets?
Gordon’s proposal taps into a larger global debate, how should governments respond to capital flight into digital assets? For now, UK regulators are watching closely as younger generations favor crypto over stocks, threatening the pipeline of capital that keeps businesses and the economy growing.
With the London market stagnating and crypto adoption rising, the question remains: Can the UK strike a balance, or will taxing crypto push investors further offshore?
