UK rejects U.S. strategy, confirms no plan to hold Bitcoin in national reserves & choose not to follow EU rules.

The UK government explores blockchain use for issuing debt, partner to be chosen by summer. Reynolds admits decentralized crypto like Bitcoin remains difficult for any government to control.

The UK government has no plans to hold Bitcoin (BTC) as part of its national reserves or to copy the European Union's (EU) special crypto rules, an official from the UK Treasury has confirmed.

At the same time, the country is exploring the use of blockchain technology for issuing government debt, with a partner to be chosen by the summer.

Speaking at the Financial Times Digital Asset Summit in London on Wednesday, Emma Reynolds, deputy director for financial services and markets at the UK Treasury, said the country will not copy the U.S. or the EU when it comes to creating a bitcoin reserve or applying for special crypto rules.

“While the U.S. is thinking about holding bitcoin as part of its reserves, with a neutral budget strategy, we don't think that's right for our market,” she said.

Instead, the UK is looking at new ways to use blockchain, such as issuing government debt using the technology. A process is already underway to find a supplier for this, with results expected by late summer.

At the same time, the UK and U.S. officials have established a joint working group to focus on crypto oversight. Both sides agree that global collaboration is essential in this rapidly evolving domain.

“We're working closely with the U.S. to align our approaches in this crucial area. Both sides see the importance of global collaboration in this fast-moving space,” Reynolds said.

The official added that the UK doesn't want to copy the EU's special crypto rules, known as Markets in Crypto Assets (MiCA). The UK has its way of making laws, which is more focused on achieving desired outcomes.

“We have a different way of making law, which is focused more on outcomes and less on prescriptive rules, which aligns well with our approach to crypto. We plan to treat crypto firms like traditional financial firms if they take on the same risks,” she said.

This approach is encapsulated in the government's "same risk, same rules" principle for regulating financial services.

“So, some crypto things are really hard to control because they are fully decentralized—there's only so much we can do.”

In essence, the UK is aiming for a balanced and practical approach to managing crypto, integrating it into existing rules rather than creating a separate regulatory framework.