IG group’s crypto launch could increase risk while expanding access
IG Group is the first publicly listed company in the UK to let people buy, sell, and hold cryptocurrencies directly on its trading platform.
The company’s decision allows the everyday investor to easily trade digital assets on a more transparent and regulated platform than many crypto exchanges.
However, critics say the venture could expose people to more risks than wins because digital assets have unstable prices and don’t include investor protections. This begs the question of whether IG Group’s launch will make UK finance available to more people and encourage the safe use of the assets or whether it will cause potential losses for investors who don’t fully understand the risks involved.
Why did IG Group launch crypto trading now?
Until recently, IG only allowed its UK customers to trade digital assets through CFDs, which meant investors never owned the actual coins but only speculated on price movements. These restrictions were set in place by UK regulations that banned crypt CFDs for retail clients to protect them from high risks.
IG has now partnered with Uphold to let users buy, sell, and hold over 30 real digital assets directly within IG’s existing trading platform instead of just betting on prices. The service is less risky than CFDs because it doesn’t involve borrowing money to amplify gains or losses.
The user experience allows investors to manage their crypto alongside other accounts, such as Individual Savings Accounts (ISAs), without a separate app or platform because Uphold handles the transaction processing, pricing updates, and securely storing digital coins.
IG timed its launch perfectly as UK regulators started introducing cryptocurrency laws. The company wants users to view it as a trusted and regulated way for everyday investors to join the crypto market without leaving a familiar platform.
Can IG make crypto investing easier for everyone?
People in favor of the launch say IG’s move to offer trading through a well-known, regulated, and publicly listed company will convince investors they are dealing with a reliable and transparent business that follows strict rules to protect consumers.
IG’s UK managing director, Michael Healy, describes the company as a “grown-up business,” highlighting how this new service could attract first-time investors looking to explore digital assets without feeling overwhelmed or exposed to the unnecessary dangers found on less-established platforms.
Investors will also willingly pay upfront because IG charges a clear and straightforward fee of 1.49% on crypto trades without any hidden costs that could raise suspicions.
This new service represents a moment when cryptocurrency finally enters the mainstream financial world to satisfy investors who want safe, simple, and regulated ways to buy, sell, and hold digital coins.
IG’s new crypto service could lure investors into high-risk trades
Some analysts warn that IG’s new service might expose investors to greater risks because cryptocurrency is highly volatile, and previous market crashes prove how investors can lose billions of pounds instantly.
IG may be a regulated and trusted company, but its partner, Uphold, isn’t covered by the UK’s Financial Services Compensation Scheme (FSCS). For this reason, users may have no legal protection or compensation and could lose all their money if something goes wrong, like a hack, technical failure, or insolvency.
The launch might also encourage inexperienced or newer investors to jump into speculative trading simply because they trust IG’s strong brand and assume this means their crypto investments are completely safe. However, the truth is that crypto markets can shift dramatically in minutes, and prices can collapse as quickly as they rise.
Critics fear that IG’s trusted brand might convince people to take risks they don’t fully understand. When losses inevitably occur because they’re common in crypto, it could damage individual investors’ confidence and shake trust in the broader financial system.
IG’s launch could change how the UK handles crypto
IG Group’s decision to allow everyday traders to buy, sell, and hold real crypto tokens through a well-known and regulated provider helps normalize the idea that digital assets have a legitimate role in personal finance.
The company’s success will attract more traditional financial systems to build similar services that are transparent, secure, and aligned with regulatory expectations, which could set new standards for responsible crypto activities.
The move could also convince policymakers that crypto isn’t a high-risk sector run by offshore actors but an asset that serious, regulated institutions can actually manage safely.
The stakes are still high because any mishaps could shake investor confidence in IG’s new product and the entire idea of regulated crypto access, forcing the public to question whether traditional financial institutions can manage such a volatile asset class.
Political leaders could also face pressure to crack down harder or delay regulation if there’s media attention around investor losses or customer complaints.
In the worst-case scenario, the industry IG is trying to elevate could suffer a reputational hit that sets back years of progress. Instead of encouraging thoughtful, inclusive innovation, a misstep could revive old fears that crypto is simply too risky for the average person, no matter who offers it.
Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More
Original reporting: cryptopolitan.com
