UK Treasury Rejects National Crypto Reserve Proposal
Key Notes
- The UK has rejected the idea of a national crypto reserve and will not hold Bitcoin in state accounts.
- The government prioritizes US collaboration and plans sovereign debt issuance using blockchain.
- Britain is also avoiding the EU’s MiCA path, favoring traditional financial regulations for crypto.
The United Kingdom has confirmed it will not create a national reserve of digital assets like Bitcoin
BTC
$96 611
24h volatility:
2.1%
Market cap:
$1.92 T
Vol. 24h:
$29.09 B
. The announcement came during a major financial event in London, where the UK’s position on crypto strategy was explained clearly.
UK Rules Out Crypto Reserve Plans
It is worth noting that the UK government has rejected the idea of stockpiling Bitcoin and building a digital asset reserve similar to what the United States has started doing. Coinspeaker noted earlier that the United States of America President Donald Trump signed an executive order to create the US Bitcoin reserve.
However, speaking at the Financial Times Digital Assets Summit, Economic Secretary to the UK Treasury Emma Reynolds stated that while digital assets remain a topic of discussion, holding Bitcoin as state-owned reserves is not on the table.
The United Kingdom focuses on how blockchain technology can improve current systems rather than holding crypto as part of its financial holdings. One area being explored is distributed ledger technology for issuing sovereign debt. This could improve efficiency and transparency in handling government bonds.
It is important to add that this direction is distinct from the approach taken by the United States. The UK focuses more on practical tools and regulated innovation than on investing in volatile digital currencies.
The government is taking a cautious but forward-looking stance. It is choosing to work on real applications of digital tools in finance, rather than treating crypto as an asset class for reserve purposes.
The Treasury views this path as more stable and better aligned with the UK’s financial structure. The country is not aiming to copy what others are doing but to build its own method within its long-standing economic systems.
UK Takes Independent Path From EU MiCA Framework
Although the UK is not following the US on crypto reserves, it still works closely with American counterparts on digital asset policies. A working group of officials from both countries has been established to support cooperation. This group is expected to meet in June and will focus on sharing ideas and aligning on areas of regulation.
In addition, Coinspeaker noted earlier that the UK FCA has called for public input on DeFi offerings. According to the update, the FCA is asking the public and the crypto industry to share their views. The focus is on regulating certain digital asset services under British law.
At the same time, the UK is moving in a different direction from the European Union. It has chosen not to follow the EU’s Markets in Crypto Assets (MiCA) framework, which sets out strict rules for digital assets across member states.
Generally, the government accepts that some parts of the crypto space, especially decentralized systems like Bitcoin, are more challenging to control. While regulation will cover many areas, complete oversight is not always possible. The UK recognizes these limits and works within them as it shapes its approach to digital finance.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
