IG Group Launches Retail Crypto Trading in UK Amid Regulatory Clarity

IG Group, a prominent traditional finance (TradFi) giant and FTSE-listed broker, is set to launch retail crypto trading in the UK starting tomorrow. This move marks a significant milestone as IG becomes the first London-listed broker to offer spot tokens on its multi-asset platform. The integration is facilitated through a partnership with Uphold, a digital-asset exchange that will provide custody and execution services. However, it is important to note that the Financial Services Compensation Scheme does not cover assets held with Uphold, and trading will be limited to fully paid positions with no leverage.

Michael Healy, the managing director of IG U.K., highlighted the growing demand for direct exposure to cryptocurrencies among traditional account holders. This includes not only major coins like bitcoin and ether but also a growing list of altcoins such as Solana, Dogecoin, and the meme token DogWifhat. The launch comes at a time when the Treasury has published a draft rulebook aimed at bringing crypto under existing market abuse, consumer protection, and capital regimes. Chancellor Rachel Reeves emphasized that the framework would "boost investor confidence."

Regulatory clarity is coinciding with a surge in public participation in the crypto market. A survey by the Financial Conduct Authority released in August 2024 revealed that 12 percent of U.K. adults, approximately seven million people, already own digital assets, up from 4.4 percent in 2021. Awareness of digital assets stands at 93 percent, indicating a broad acceptance and interest in the market.

Brokerages are rapidly adapting to meet this demand. While Revolut and eToro have long offered retail crypto channels, and Coinbase operates outside the traditional brokerage model, IG aims to attract clients who might otherwise move funds to challenger apps by integrating crypto trading into its spread-bet and equities platform. The decision to outsource custody to Uphold reflects a broader trend among established financial firms seeking to add digital assets without building wallet infrastructure in-house. This approach allows brokers to control market risk and time-to-market while regulatory bodies finalize technical safeguarding rules.

Crypto markets have shown sustained momentum ahead of the product rollout. Total capitalization stood near $3.3 trillion on June 2, with Bitcoin stable around $105,000. The deeper liquidity and tighter regulation are encouraging mainstream brokers to treat tokens as another asset class rather than an exotic side bet. However, IG’s move also raises questions. Clients must absorb price swings without leverage and will shoulder the full tax burden on gains. The broker must clearly flag the absence of deposit protection, and the Financial Conduct Authority is refining capital and safeguarding thresholds for firms holding client crypto, which may require future adjustments.

Despite these considerations, IG’s step signals that digital assets have crossed an institutional line in the UK. With policy guardrails emerging and millions of Britons already holding tokens, 2025 is shaping up as the year crypto settles inside the City’s regulated perimeter. This development underscores the growing acceptance and integration of cryptocurrencies into the traditional financial landscape, driven by both regulatory clarity and public demand.