The UK, which is targeting to conclude its crypto rules by 2026, has ruled out establishing a national crypto reserve. The Economic Secretary to the Treasury, Emma Reynolds, discussed the nation’s position on building a stockpile of cryptocurrency at the Financial Times Digital Asset Summit in London on Tuesday. The announcement follows the New York Department of Financial Services (DFS) and the Bank of England (BoE) revealing a transatlantic regulatory swap to “harmonise” digital asset law in January this year.
Crypto Hoarding Not on UK Agenda
Reynolds explained that hoarding crypto does not suit the UK market, so the nation excluded such a move from its crypto agenda at the moment, Decrypt reported. She did not comment on why the idea was rejected.
US President Donald Trump made history when he announced two strategic cryptocurrency reserves earlier this year. While one will be committed to building Bitcoin, the oldest and most costly crypto asset, the other will be accumulating altcoins. The US has chosen to invest seized crypto assets in such reserves instead of spending taxpayers’ money on new tokens. As of March, it is estimated that Bitcoin has more than 200,000 BTC tokens valued at more than $17 billion (approximately Rs. 1,53,161 crore).
Global Reaction to US Crypto Strategy
Although the UK has chosen not to follow suit in this sphere, President Trump’s move was able to stimulate discussions regarding crypto reserves across the globe. Discussions on following US’ footsteps have found traction in countries such as the Czech Republic and Hong Kong.
UK and US: Crypto Market Volatility Deters Many Nations
The instability of the crypto market, though, still deters most countries from associating crypto with their national reserves. The Swiss National Bank earlier in March dismissed the notion of stockpiling crypto. Poland and Japan have also been said to have rejected the inclusion of crypto in the list of their respective reserved assets.
Last month, Polygon co-founder Sandeep Nailwal, while speaking to Gadgets 360, recommended that India think about investing small amounts in crypto reserves, but financial analyst Nemin Shah added that there was no need for the nation to hurry into the experiment.
