UK Investors Can Now Avoid Paying Tax on Crypto Investments

Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. This development comes after Stratiphy received permission to offer ETNs within a special class of individual savings account, as reported by the Financial Times. The startup, which allows users to personalize their investment strategies, will offer both crypto ETNs and Innovative Finance ISAs, enabling users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Stratiphy will provide access to three ETNs from 21Shares, including those tracking bitcoin, ether, and a combination of bitcoin and gold. This move is significant, given the UK tax authority's prior classification of crypto ETNs as instruments only available in IFISAs from the start of the current tax year. The decision had rendered last year's lifting of the ban on retail users accessing crypto ETNs redundant, as no mainstream platforms offered IFISAs with crypto products. Stratiphy's CEO, Daniel Gold, noted that there is a high level of interest in these crypto products, citing their potential as a new asset class with low correlation to other asset classes, making them an interesting way to diversify portfolios.