What is Ethereum Classic
Ethereum Classic is the continuation of the original Ethereum blockchain, born in 2016 after the community split over how to handle the DAO hack: those opposed to reversing the stolen transactions kept the original chain under the name Ethereum Classic.
Unlike Ethereum (which moved to Proof-of-Stake), Ethereum Classic continues to use Proof-of-Work mining and has suffered several 51% attacks over the years — a security risk linked to the network's lower overall computing power compared with Bitcoin.
Frequently asked questions
Is Ethereum Classic 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 Ethereum Classic 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 Ethereum Classic 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.
