UK investors unable to put crypto products in Isas from April
Financial Times
February 25, 2026
AI-Generated Deep Dive Summary
The UK government has announced that as of April 2023, investors will no longer be able to hold cryptocurrency products within Self-Invested Personal Pensions (SIPPs) or Individual Savings Accounts (ISAs). This move follows stricter regulations aimed at curbing potential tax avoidance and aligns with global efforts to enhance financial stability. HMRC will cease accepting crypto assets in these schemes, effective from April 1st, with a transition period allowing investors until March 31st to transfer existing holdings.
This change marks a significant shift in the UK's regulatory approach toward cryptocurrencies. Previously, ISAs and SIPPs allowed for a wide range of investments, including stocks, bonds, and certain alternative assets. However, the inclusion of crypto assets has been contentious due to their volatile nature and lack of standardized regulations. The government's decision reflects concerns over tax evasion risks associated with holding illiquid assets within tax-advantaged accounts.
The implications for investors are substantial. Those holding cryptocurrencies in their ISAs or SIPPs must now decide whether to sell their holdings before the deadline or face potential restrictions on accessing their investments. This could lead to a surge in transactions as individuals rush to liquidate crypto assets. Additionally, this move may impact the broader adoption of digital assets in traditional investment vehicles, potentially stifling innovation and investor diversification strategies.
Critics argue that this decision could undermine financial innovation and limit opportunities for retail investors to participate in the growing cryptocurrency market. However, supporters contend that it ensures a level playing field by preventing tax avoidance through illiquid assets held within sheltered accounts. The debate highlights the ongoing tension between regulatory oversight and fostering technological advancements in finance.
For business readers, this development underscores the evolving landscape of financial regulation and its impact on investment strategies. It also signals the government's proactive approach to managing risks associated with emerging asset classes. As cryptocurrencies continue to gain mainstream acceptance, such policy changes will likely shape their integration into traditional investment frameworks, influencing both investor behavior and market dynamics.
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Originally published on Financial Times on 2/25/2026