UK Treasury Secretary Turns Down Plans for National Crypto Reserve

Emma Reynolds, the United Kingdom’s Treasury Secretary, revealed today that the country is not exploring a national crypto reserve like the United States did. She confirmed this at the Financial Times’ Digital Assets Summit, a two-day event themed around cryptocurrency discussions and the financial markets. The UK Treasury Secretary referenced Bitcoin’s volatility as a key reason behind the decision.

UK Treasury Says No to Crypto Reserves

Since emerging as the U.S. president, Donald Trump has led the country in building a strategic crypto reserve. The president signed an executive order to establish a Bitcoin reserve in early March. Since then, the government has steadily moved to live up to this commitment. But Reynolds thinks otherwise.

“We don’t think that’s appropriate for our market. We understand that’s what the U.S. is going for, but that’s not the plan for us,” she stated at the summit.

While the UK has firmly ruled out a government-backed Bitcoin reserve, it does hold a significant amount of the cryptocurrency. Reports indicate that the UK government has, through criminal seizures, racked up a total of 61,245 BTC. These digital assets are worth over $5 billion. Unlike the U.S., the UK has no plans to commit to holding these assets indefinitely.

Some financial experts, including partners at RSM accounting, have suggested selling the Bitcoin to support economic stability. At the same time, Bitcoin enthusiasts argue that maintaining these holdings could bolster the asset’s market value.

The UK’s Position on Crypto

The UK government has pursued a prudent strategy regarding cryptocurrency, focusing on establishing robust regulations rather than providing state-backed financial support.

The Financial Conduct Authority (FCA) has issued updated guidelines for the cryptocurrency industry, enhancing regulatory oversight and compliance standards. Furthermore, the FCA has banned retail investors from borrowing money to buy crypto. The country has even faced the threat of an economic downturn in the crypto space due to delayed crypto regulations.

In early 2025, Coinbase secured regulatory approval to offer crypto services in the UK, in precedence to Kraken, BlackRock, gaining licenses a few months later.