UK to restrict crypto ETNs in tax-free savings accounts

UK investors will be barred from adding crypto exchange-traded notes (ETNs) to their tax-free Individual Savings Accounts (ISAs) starting next fiscal year, the Financial Times reported. According to the report, the UK's tax authority, Her Majesty's Revenue and Customs (HMRC), will exclude crypto ETNs from standard ISAs. Instead, they will be reclassified as eligible for Innovative Finance ISAs (IFISAs), which do not offer the same tax advantages. However, virtually none of the 57 platforms approved to handle IFISAs plan to support crypto ETNs, making it difficult for investors to receive tax benefits on these products.