UK Urged to Tax Crypto to Redirect Capital to Local Stocks

• Lisa Gordon proposes taxing crypto purchases and cutting stamp duty on equities to shift investments into UK companies.
• With only 18 new listings in 2024 and rising crypto ownership, Gordon warns of declining local market support.

The head of Cavendish Investment Bank, Lisa Gordon, has stirred debate by proposing a tax on crypto purchases in the UK. Her aim? Shift billions away from the crypto market and push it into struggling local equities. Gordon warned of what she sees as a disturbing trend among younger Britons turning away from traditional investment.

It should terrify all of us that over half of under-45s own crypto and no equities. I would love to see stamp duty cut on equities and applied to crypto,

Her concern stems from the rapid rise in cryptocurrency ownership while the London Stock Exchange continues to shrink in influence.

Gordon emphasizes that the crypto tax proposal isn’t just a fiscal shift—it’s social. Equities, unlike crypto, supply growth capital to companies that hire workers, innovate and pay corporate taxes. Gordon sees crypto as a “non-productive asset” that doesn’t do a lot to further the economy’s long-term development.

UK Market Faces Sharp Decline — Only 18 Listings in 2024

In 2024, only 18 companies were listed on the London Stock Exchange. That marks a major drop from 2023 with companies listed. Making matters worse, 88 companies either delisted or moved elsewhere, underscoring a worrying downward trend for the UK’s primary equity market.

Despite this, Gordon remains hopeful. She called the UK a “safe haven” for stock markets, especially compared to what she described as the turbulent and unpredictable U.S. financial landscape. Her vision leans toward revitalizing this haven by making local stocks more appealing through targeted tax changes.

Currently, equities on the London exchange are subject to 0.5% stamp duty. Gordon believes that reducing this rate can make a big difference. In her opinion, making it cheaper to buy local stocks and levying a similar tax on crypto can divert investor focus to real companies rooted in the British economy.

Crypto Popularity Sparks Concern

The UK currently rakes in roughly £3 billion ($3.9 billion) a year in tax revenues. Gordon thinks a smart tax shift—less on equities, more on crypto—might push savers to invest where it actually supports business and jobs. Her logic is straightforward: why not incentivize people to invest in firms that create value, not digital tokens that float without roots?

Gordon’s views differ sharply from global trends. The US, South Korea, and El Salvador are all embracing crypto. Former US President Donald Trump even signed an executive order to form a strategic Bitcoin reserve. But while other nations race toward digital assets, Gordon urges Britain to pause and reflect.

Her proposal urges the UK government to weigh long-term economic strength against short-term digital hype. She’s not anti-tech but firmly pro-growth—where companies grow, individuals get hired, and taxes maintain public services.