- Despite the UK’s Financial Conduct Authority (FCA) recently lifting a long-standing ban on retail access to regulated crypto products, Hargreaves Lansdown remains skeptical
- The company is not ruling out offering limited crypto access
- UK’s tax office has stated that regulated crypto investment products can be held in tax-free savings accounts and pensions, following certain rules
Hargreaves Lansdown, the UK’s largest retail investment platform, publicly issued a strong warning to investors stating that Bitcoin (and many cryptocurrencies) lack intrinsic value and should not be considered a proper asset class.
Despite the UK’s Financial Conduct Authority (FCA) recently lifting a long-standing ban on retail access to regulated crypto products, Hargreaves Lansdown remains skeptical. It argues that crypto doesn’t meet the usual criteria for growth or income investments, and it shouldn’t be considered as a reliable way to achieve financial objectives.
The company specifically stated: “The HL Investment view is that Bitcoin is not an asset class, and we do not think cryptocurrency has characteristics that mean it should be included in portfolios for growth or income and shouldn’t be relied upon to help clients meet their financial goals.”
Nonetheless, Hargreaves Lansdown is not ruling out offering limited crypto access. For instance, the plan is to introduce crypto exchange-traded notes (ETNs) as early as 2026, but only under strict “appropriateness testing” (ensuring that clients understand the risks).
Related: UK’s FCA to End Retail Ban on Crypto ETNs Beginning October 8
While rival platforms (Interactive Investor, Saxo, and others) have already committed to offering ETNs when regulatory approval is in place, Hargreaves Lansdown is the most vocal skeptic among its peers.
Recent crypto happenings in the UK
On 8 October, the UK’s FCA lifted a long-standing ban on retail investors purchasing cryptocurrency ETNs, such as Bitcoin and Ether ETNs, making it possible for UK retail investors to gain regulated crypto exposure.
Alongside this, the UK tax authority HM Revenue & Customs (HMRC) confirmed that regulated crypto investment products can be held in tax-free savings accounts and pensions, subject to certain rules. This makes investing in crypto through these official channels more attractive to everyday savers.
On the stablecoin front, the UK is preparing consultation papers for stablecoins used for payments or large-scale settlement. Stablecoins are not yet regulated under the UK payments framework unless they become “systemic.”
Still, compared to how it was before, the UK nowadays is slowly opening up regulated crypto access for everyday investors, doing so very carefully. While this creates potential for growth, it also leaves a lot of unanswered questions.
Related: UK Trade Associations Push for Blockchain, Stablecoins in US-UK Tech Pact
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