Chancellor Rachel Reeves's plan to include cryptocurrency in Individual Savings Accounts faces a significant setback as no mainstream platforms plan to offer both crypto ETNs and Innovative Finance Isas for the April launch. The move was intended to boost retail investment in digital assets by making them tax-efficient within Isas.

Industry sources indicate that platforms are hesitant to integrate crypto products due to regulatory uncertainty and operational complexities. The Innovative Finance Isa wrapper, designed for peer-to-peer lending and alternative investments, would have provided a pathway for crypto exposure. However, platforms appear unwilling to navigate the compliance challenges associated with digital asset custody and trading.

This development undermines Reeves's strategy to position the UK as a crypto-friendly financial hub. Without platform support, the tax advantages of holding crypto through Isas remain inaccessible to retail investors. The lack of adoption suggests that regulatory clarity and operational frameworks need significant development before mainstream financial institutions will embrace crypto integration.