UK Rules Out National Bitcoin Reserve, Will Take a Different Approach to Regulating Bitcoin and Crypto

Speaking at the Financial Times Digital Asset Summit in London on Tuesday, Emma Reynolds, Economic Secretary to the Treasury, emphasized that while the UK aims to become a crypto hub

British officials are rolling up their sleeves to handle the burgeoning crypto sector with a unique approach, diverging from both the U.S. and E.U.’s strategies.

Speaking at the Financial Times Digital Asset Summit in London on Tuesday, Emma Reynolds, Economic Secretary to the Treasury, clarified that the UK is not aiming to create a national Bitcoin reserve, as the U.S. is intending to do.

“We don't think that's appropriate for our market. We're aware that the U.S. is planning to do that, but that's not the plan for us," Reynolds stated.

This statement arrives as the UK government is set to introduce a new regulatory regime for Bitcoin and crypto by 2025. Instead of adopting the E.U.'s Markets in Crypto Assets (MiCA) legislation or following the U.S. reserve initiative, the UK aims to integrate crypto regulation into its existing financial services framework.

“We're also establishing a senior official level working group with the U.S. to discuss cooperation on crypto, with a regulatory forum set for June,” Reynolds added, highlighting a joint effort with the U.S. Treasury. This follows recent meetings between the UK's Chancellor of the Exchequer and U.S. Treasury Secretary Scott Bessent.

The UK's approach centers on regulating Bitcoin and crypto "within the regulatory perimeter that traditional financial services firms operate," adhering to a "same risk, same regulatory approach" principle.

While acknowledging the difficulties in regulating certain aspects of Bitcoin and crypto, especially the cryptocurrency's decentralized nature, Reynolds said: "There's only so much the government can do in that respect. We recognise that some of this stuff is a bit amorphous, and the decentralised stuff is particularly difficult."