What is Litecoin
Litecoin, launched in 2011 by Charlie Lee (a former Google and Coinbase employee), was among the first cryptocurrencies to differentiate itself from Bitcoin, with faster block times (2.5 minutes versus 10).
It's one of the longest-running active cryptocurrencies, though over the years it has lost ground to newer solutions both as a means of payment and as a store of value.
Frequently asked questions
Is Litecoin 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 Litecoin 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 Litecoin 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.
