What is Polkadot
Polkadot, launched in 2020 by Gavin Wood (an Ethereum co-founder), is designed to let different independent blockchains ("parachains") communicate and share security, rather than operating as isolated networks.
Its shared security model requires parachains to win a limited "slot" via auction, a distinguishing mechanism compared with other interoperability platforms like Cosmos, which leaves individual chains more autonomy.
Frequently asked questions
Is Polkadot 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 Polkadot 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 Polkadot 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.
