The UK government has officially dismissed the concept of establishing a national Bitcoin (BTC) reserve, positioning itself to take a distinct regulatory path compared to the United States and the European Union.
As reported by Bitcoin Magazine, Emma Reynolds, the Economic Secretary to the Treasury, articulated this stance during her remarks at the Financial Times Digital Asset Summit held in London.
UK Will Not Emulate US Bitcoin Stockpiling Strategy
Reynolds emphasized that while the UK aspires to become a global hub for cryptocurrency, it will not mirror the US strategy of stockpiling Bitcoin. “We don’t think that’s appropriate for our market. We understand that’s what the US is going for, but that’s not the plan for us,” Reynolds stated, highlighting the UK’s intention to forge its own regulatory framework rather than adopting existing models from other regions.
As reported by Bitcoinist, the government plans to implement a new regulatory framework for Bitcoin and cryptocurrencies by the end of 2025, aiming to incorporate these digital assets within the established financial services regulation.
In an effort to encourage further cooperation between the two countries, UK Finance Minister Rachel Reeves recently revealed the government’s plan to transform the UK into a worldwide center for digital assets.
The goal of the proposed legislation is to address concerns about criminal actors and to ensure that legitimate innovation can thrive by bringing crypto exchanges, dealers, and agents under regulation.
Cryptocurrency Regulatory Cooperation
In her address, Reynolds noted the formation of a senior-level working group with the US to enhance cooperation on cryptocurrency regulations.
A regulatory forum is expected to occur in June, which follows recent discussions between the UK’s Chancellor of the Exchequer and US Treasury Secretary Scott Bessent.
According to Bitcoin Magazine’s report on the matter, the collaboration between the two parties aims to address common challenges and streamline regulatory practices between the two countries.
The UK’s approach focuses on a principle of “same risk, same regulatory approach,” indicating that cryptocurrencies will be regulated with the same rigor as traditional financial services. However, Reynolds acknowledged the inherent challenges in regulating Bitcoin and crypto assets, particularly due to their decentralized nature.
“There’s only so much the government can do in that regard. We understand that some of this stuff is a little bit amorphous, and the decentralized stuff is particularly difficult,” she remarked, recognizing that the amorphous aspects of cryptocurrency make regulation complex.
Featured image from DALL-E, chart from TradingView.com
