UK Treasury Secretary Dismisses Creation of US 5a49 Like National Crypto Reserve

UK treasury secretary Emma Reynolds said that stockpiling crypto was not appropriate for the UK market. z5t48

Written by Manas Mitul | Updated: 6 May 2025 21:09 IST

UK Treasury Secretary Dismisses Creation of US-Like National Crypto Reserve

Photo Credit: Pixabay/ Butti_s 1z682w

The UK aims finalise its crypto rules by 2026

Highlights

Bitcoin's BTC stockpile is estimated to be worth $17 billion
Hong Kong, Czech Republic have shown an interest in crypto reserve
Prior to the UK, Switzerland and Japan also dismissed crypto reserves

ment

The UK, that is eyeing to finalise its crypto regulations by 2026, has dismissed the creation of a national crypto reserve. Emma Reynolds, the Economic Secretary to the Treasury, spoke about the country's stance on accumulating a crypto stockpile at the Financial Times Digital Asset Summit in London on Tuesday. The statement comes after the New York Department of Financial Services (DFS) and the Bank of England (BoE) announced a transatlantic regulatory exchange to "harmonise" digital asset legislation in January this year.

Reynolds said that stockpiling crypto was not appropriate for the UK market and as such a step in that direction was not part of the country's crypto plans for now, Decrypt reported. She did not elaborate on the reasons for dismissing the idea.

US President Donald Trump created history when he announced two strategic reserves for cryptocurrencies earlier this year. While one is dedicated to accumulating Bitcoin, the oldest and most expensive crypto asset, the other will pile up altcoins. The US has decided to put seized crypto assets into these reserves rather than using taxpayers' money to purchase new tokens. It is estimated that as of March, Bitcoin had over 200,000 BTC tokens amounting to over $17 billion (roughly Rs. 1,53,161 crore).

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While the UK has decided not to mirror the US in this arena, President Trump's decision did manage to open discussions around crypto reserves in many parts of the world. The dialogue around following US' footsteps have seen in regions like the Czech Republic and Hong Kong.

The volatility of the crypto sector, however, continues to keep many nations cautious about linking crypto to their national reserves. Earlier in March, the Swiss National Bank rejected the idea of hoarding crypto. Poland and Japan have also reportedly dismissed adding crypto to the list of their respective reserved assets.

Last month, Polygon founder Sandeep Nailwal, in conversation with Gadgets 360, advised India to consider allocating small investments into crypto reserves, but financial analyst Nemin Shah said there was no urgency for the country to rush into the experiment.

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For now, the US is the only country with crypto reserves.

Reynolds did however say that the UK completely ed the US on increasing Web3-focussed collaborative efforts. She cited the example of the transatlantic regulatory exchange, as part of which, the NY DFS and the BoE agreed to exchange senior staff officials proficient in managing digital assets and emerging payments.

The UK is internally exploring the potential of issuing blockchain-based sovereign debt. As per the Decrypt report, Reynolds has said that the UK government is set to appoint a supplier in the summer this year. She also said that UK's crypto rules would not be inspired by EU's MiCA regulations.

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Further reading: Crypto Stockpile

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More