Cryptocurrency: Can You Use It When Buying or Selling?
Cryptocurrencies are said to be the currencies of the future. Here we'll ask: can you (and should you) buy or sell property using crypto?
What is a Cryptocurrency?
Cryptocurrencies have been around for years. However, with President Trump pledging to make the US the ‘crypto capital of the planet', we could hear a lot more about it in 2025.
A cryptocurrency is a virtual, digital currency. It doesn't exist in the form of notes or coins. It isn't controlled by any one organisation, such as a bank or government.
Bitcoin is the best-known cryptocurrency. Other variations on the theme include Ethereum, Tether and XRP.
Can You Buy or Sell Property with Cryptocurrency?
Yes, you can. In fact, it's already been done.
The first UK property transaction in crypto involved a detached house in Essex, and was reported in The Sun newspaper in 2017.*
Search online and it's possible to find properties for sale priced in crypto, although numbers are still very small.
Is Buying or Selling a Property with Cryptocurrency a Good Idea?
There are a couple of reasons why buying or selling property using crypto might seem attractive. Cryptocurrencies are anonymous and independent. Their value isn't necessarily linked to conventional currencies like the pound.
But a big issue with using crypto would be establishing a value. How many Bitcoins would you ask for your house or flat? Remember that cryptocurrencies can be very volatile too.
Another issue would be finding a buyer (or seller) who also wants to use crypto. Because not many people would be willing to do so, the market for your property would be really small. That might mean you wouldn't get the very best price for it.
There could also be snags with complying with anti-money laundering regulations. You may also face issues assessing how much Stamp Duty or other taxes like Capital Gains Tax you might owe.
In short, while buying or selling a property using cryptocurrency is possible, it probably isn't a great idea – at least just yet. You should definitely take expert financial and legal advice if you are considering it.
If you're considering selling your home, we'll be glad to offer you a free market appraisal and valuation in good, old reliable pounds sterling, of course. Call or message us today.
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Frequently Asked Questions
1. Can I legally buy or sell property with cryptocurrency in the UK?
Yes, property transactions can legally be conducted using cryptocurrency, but they must comply with UK financial regulations and tax laws.
2. What are the risks of buying property with crypto?
Cryptocurrency values can be highly volatile, making it difficult to determine a stable price for the property. There may also be complications with mortgages and regulatory compliance.
3. Are there any tax implications when using crypto for property transactions?
Yes, using crypto for a property purchase may incur Capital Gains Tax and Stamp Duty obligations. Professional legal and financial advice is essential.
4. How common is it to use crypto for property purchases?
Crypto-based property transactions remain rare in the UK due to regulatory uncertainty and limited market demand.
5. Should I consider selling my property in cryptocurrency?
While it is possible, it may limit the number of potential buyers and complicate the transaction process. Most sellers prefer traditional currency for simplicity and market reach.
