What is Algorand
Algorand is a smart contract platform launched in 2019 by computer scientist Silvio Micali (a Turing Award winner), with a pure Proof-of-Stake consensus mechanism designed to ensure high speed without sacrificing decentralisation.
It positions itself as carbon-negative and has formed several institutional collaborations (including pilot projects with governments and public bodies), while remaining one of the less widely adopted smart contract platforms compared with rivals like Ethereum or Solana.
Frequently asked questions
Is Algorand regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying Algorand on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is Algorand taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
