Commentary: UK opens ISAs to crypto – is it too little, too late?

“There is finally a positive development for crypto investors in the UK. From 8 October 2025, UK investors can hold crypto Exchange-Traded Notes (ETNs), including BlackRock’s Bitcoin ETF, within their £20,000 annual ISA allowance and pension contributions. This long-awaited change offers a regulated and tax-efficient way for retail investors to gain exposure to digital assets, something the US has allowed for some time. However, rather than positioning London as a true ‘crypto hub’, this move feels more like catching up than leading.

“London’s competitiveness in fintech and crypto has been slipping. The departure of companies like Revolut and figures such as Nik Storonsky to Dubai highlights how overregulation and uncertainty have driven innovation abroad. Allowing crypto ETNs is a step in the right direction, but it may prove too little, too late.

“Further, from 1 January 2026, the UK will introduce the OECD’s Cryptoasset Reporting Framework (CARF), requiring exchanges and wallet providers to collect detailed user information and report it to HMRC. While this aims to improve tax compliance, it risks adding another layer of bureaucracy just as the industry begins to open up. The UK must balance innovation with oversight or risk falling further behind.”