Nikolas Sargeant
UK-listed trading company IG Group has achieved a historic milestone by becoming the first London Stock Exchange-listed firm to provide retail investors with direct cryptocurrency trading capabilities, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) through a comprehensive digital assets service.
"This is a major milestone in the UK's crypto journey," declared Michael Healy, managing director of IG's UK operations, speaking to The Times. "Customer demand is reaching a tipping point."
The innovative service enables IG retail clients to trade 38 different cryptocurrencies through a strategic partnership with Uphold, an established digital assets platform. This expansion represents a significant departure from IG's traditional focus on leveraged trading and stockbroking services.
Comprehensive Digital Asset Portfolio Includes Major Tokens and Emerging Assets
The cryptocurrency selection encompasses mainstream digital assets such as Bitcoin, Ethereum, and XRP, alongside smaller market capitalization tokens including memecoin Dogwifhat. This diverse offering reflects the broad spectrum of investor interest across different cryptocurrency categories.
Asset custody services will be managed by Uphold, though investors should note that holdings will not receive protection under the UK's Financial Services Compensation Scheme. This distinction highlights the regulatory differences between traditional financial products and cryptocurrency investments.
IG Group's public listing status provides a competitive advantage over existing UK-based cryptocurrency services like Revolut, which operates as a private company. Healy emphasized that being publicly traded helps "bolster client trust," positioning IG as a more transparent alternative for UK cryptocurrency investors.
The timing aligns with expanding cryptocurrency adoption among UK consumers. Financial Conduct Authority (FCA) data indicates that 12% of UK adults now hold cryptocurrency—a substantial increase from just 4.4% in 2021, demonstrating rapidly growing mainstream acceptance.
Regulatory Environment Balances Innovation with Consumer Protection
This launch occurs as the UK government finalizes comprehensive cryptocurrency regulations designed to provide regulatory clarity while addressing market risks. However, authorities maintain cautious positioning regarding retail cryptocurrency exposure.
The FCA has consistently warned retail investors about cryptocurrency volatility and the absence of inherent value backing these digital assets. The 2022 FTX collapse and subsequent conviction of founder Sam Bankman-Fried further reinforced regulatory concerns about market stability and consumer protection.
Despite regulatory caution, institutional cryptocurrency interest continues expanding. Hedge funds and professional investors have increasingly allocated capital to digital assets, while political sentiment may be shifting favorably. In the United States, President Trump's pro-cryptocurrency stance has generated optimism for more supportive regulatory frameworks.
Enhanced Reporting Requirements Target Tax Compliance and Market Oversight
Beginning January 1, 2026, the UK will implement mandatory cryptocurrency trade reporting requirements as part of comprehensive efforts to strengthen tax compliance and regulatory oversight. HM Revenue and Customs (HMRC) announced that cryptocurrency platforms must collect and report detailed customer information for every transaction and transfer.
The new regulations require platforms to record complete user identification data, including full names, residential addresses, and tax identification numbers. Each transaction must be documented with specific details such as cryptocurrency type and transfer amounts.
Reporting obligations extend beyond individual users to encompass companies, trusts, and charitable organizations engaged in cryptocurrency activities. Non-compliance or inaccurate data submissions may result in penalties reaching £300 ($398) per user, emphasizing the government's commitment to comprehensive digital asset oversight.
