What is Hedera
Hedera is a network launched in 2019 that doesn't use a traditional blockchain but a proprietary technology called Hashgraph, aiming for higher speed and energy efficiency. It's governed by a council of large companies (including Google, IBM, and formerly Boeing).
This centralised governance via a council of companies sets it clearly apart from more decentralised public blockchains like Bitcoin or Ethereum — a trade-off between efficiency and decentralisation worth weighing carefully.
Frequently asked questions
Is Hedera 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 Hedera 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 Hedera 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.
