In a clear departure from the strategies of the U.S. and EU, the UK government has firmly stated its intention to avoid accumulating Bitcoin in its national reserves. Emma Reynolds from the UK Treasury made this announcement during the Financial Times Digital Asset Summit in London. She emphasized that the UK does not see Bitcoin as suitable for its market, saying, "We don’t think that’s right for our market."
While the U.S. considers holding Bitcoin as part of a diversified reserve, the UK is instead looking to explore blockchain technology for other purposes, such as issuing government debt. Reynolds indicated that the Treasury is in the process of selecting a supplier for this initiative, with a decision expected by late summer. Despite rejecting a Bitcoin reserve, the UK appreciates the importance of collaboration with U.S. regulators. A joint working group has been established to address cryptocurrency oversight, underscoring the need for global cooperation in this rapidly evolving arena.
Moreover, Reynolds clarified that the UK has no intention of adopting the EU's MiCA regulations, focusing instead on principles that emphasize outcomes. Crypto companies will be regulated similarly to traditional financial firms if they share similar risk profiles; in her words, "Same risk, same rules." She acknowledged that certain decentralized assets like Bitcoin pose challenges for government control, remarking, "There’s only so much we can do."
This balanced approach signals the UK government's emphasis on integrating cryptocurrencies within existing regulatory frameworks instead of creating new laws from scratch.
While the U.S. considers holding Bitcoin as part of a diversified reserve, the UK is instead looking to explore blockchain technology for other purposes, such as issuing government debt. Reynolds indicated that the Treasury is in the process of selecting a supplier for this initiative, with a decision expected by late summer. Despite rejecting a Bitcoin reserve, the UK appreciates the importance of collaboration with U.S. regulators. A joint working group has been established to address cryptocurrency oversight, underscoring the need for global cooperation in this rapidly evolving arena.
Moreover, Reynolds clarified that the UK has no intention of adopting the EU's MiCA regulations, focusing instead on principles that emphasize outcomes. Crypto companies will be regulated similarly to traditional financial firms if they share similar risk profiles; in her words, "Same risk, same rules." She acknowledged that certain decentralized assets like Bitcoin pose challenges for government control, remarking, "There’s only so much we can do."
This balanced approach signals the UK government's emphasis on integrating cryptocurrencies within existing regulatory frameworks instead of creating new laws from scratch.
