- UK dismisses strategic Bitcoin reserve, focusing on regulation.
- No changes to government crypto holdings.
- Ongoing UK-US discussions on digital asset regulations.
The UK government has announced it will not include Bitcoin in its strategic reserves, according to Emma Reynolds, Economic Secretary to the UK Treasury, speaking at the Financial Times Digital Asset Summit in London.
Emma Reynolds’ declaration emphasizes a focus on crypto regulation over asset accumulation, aligning more closely with Japan than the exploratory approach of the US.
The announcement by the UK government is part of its broader digital assets strategy. Emma Reynolds ruled out the establishment of a strategic Bitcoin reserve, opting to regulate crypto within existing financial laws. Reynolds cited that adopting such a reserve “is not appropriate” for the UK market and underscored a preference for cooperative regulatory discussions over direct investment in cryptocurrencies.
“We’re focused on regulating digital assets within the existing framework that governs traditional financial institutions.” – Emma Reynolds, Economic Secretary, UK Treasury Binance
This decision affects Bitcoin (BTC), which is explicitly excluded from the UK’s strategic holdings. The announcement aligns with similar past actions by Japan and contrasts with ongoing discussions in the US regarding potential crypto reserves.
Emma Reynolds explained that the UK’s focus remains on regulating digital assets like traditional financial instruments, maintaining stability and reducing speculative risks. The policy decision delineates a clear path for the UK’s crypto regulation strategy.
The UK continues collaborative efforts with the US on digital asset regulations. These include a senior-level working group and plans for a regulatory forum in June, further shaping the worldwide approach to crypto regulation.
