Key Takeaways
- The UK Treasury Secretary says the country does not plan to launch a national digital asset reserve like the US.
- Emma Reynolds MP said that following the US government’s lead in stockpiling Bitcoin is “not the plan for us.”
- The UK has formed a “senior official level working group” with the US to discuss cooperation on digital assets.
The UK has no plans to follow the United States in establishing a national cryptocurrency reserve.
According to Emma Reynolds, the Economic Secretary of the British Treasury, while London was working with Washington to bring cryptocurrencies under compulsory regulation, the UK was only inclined to incorporate crypto assets into the existing financial regulatory framework and follow the principle of “same risk, same regulation.”
Collaboration and Cooperation
During the Financial Times Digital Asset Summit in London, Emma Reynolds slammed the idea that the country would launch a national crypto reserve, adding that following the US government’s lead in stockpiling Bitcoin is “not the plan for us.”
Reynolds’s sentiments come when the UK seeks to align with the US regarding new crypto rules, stating, “We think it’s essential to have that collaboration and cooperation.” The Treasury Secretary cited recent meetings between the UK’s Chancellor of the Exchequer and US Treasury Secretary Scott Bessent, adding that the countries had established a “senior official level working group between the UK and the U.S.”
Keen On Cooperating Closely With the United States
She revealed that a regulatory forum would meet this June to agree on areas to discuss how the two countries would cooperate on cryptocurrency regulations. She added that the US had already undergone a “big change from the previous administration” in its stance on crypto under the Trump administration.
British Finance Minister Rachel Reeves recently announced that the government was keen on cooperating closely with the United States to get the best approach to digital asset regulation. According to the minister, the draft laws under consideration would extend the existing financial regulations to firms doing crypto businesses and would lean towards the US instead of the European Union, which has built rules tailored to the industry.
UK and USA Agreed to Discuss the Subject Further
The UK’s initial set of draft rules targeting new crypto rules came when the US, under President Donald Trump, made great strides towards embracing cryptocurrencies while rolling back restrictions on the industry, which worried critics. Last month, Euro Zone finance ministers expressed their concerns, claiming the US embrace of cryptocurrencies could negatively impact the euro zone’s monetary sovereignty and financial stability.
Reeves revealed she had held a roundtable meeting with US Treasury Secretary Scott Bessent during a visit to Washington last week, where the two countries agreed to discuss the subject further in June. Reeves said in a statement:
“Under the new rules, crypto exchanges, dealers, and agents will be brought into the regulatory perimeter – cracking down on bad actors while supporting legitimate innovation.”
Conclusion
Reynolds’s position on the establishment of a national crypto reserve like the US happens even as she concedes that there are areas of crypto that governments cannot regulate. While the official may have dismissed the Strategic Bitcoin Reserve idea, the UK government is focusing on developing a balanced approach to cryptocurrency regulation. The global crypto landscape is evolving fast, and only forward-thinking governments that commit to fostering innovation within the financial ecosystem will fit into a digitized economy where crypto plays a significant role.
Frequently Asked Questions
Is the UK a crypto-friendly country?
While most banks approach cryptocurrencies cautiously, the UK government has expressed a strong interest in making the country a global hub for crypto and fintech innovation.
Do you need a license to trade cryptocurrency in the UK?
You don’t need a license to own funds or trade cryptocurrency as an individual or entity. However, you require authorization from the Financial Conduct Authority to offer trading services as a crypto business.
