What is Chainlink
Chainlink is a network of decentralised oracles that connects smart contracts with real-world data (prices, events, weather) — a technical problem blockchains can't solve on their own.
It's widely used by DeFi protocols to obtain reliable asset prices: its adoption as reference infrastructure is the main driver of its value, more so than direct use as a means of payment.
Frequently asked questions
Is Chainlink 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 Chainlink 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 Chainlink 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.
