The United Kingdom government has rejected the creation of a national Bitcoin reserve. The news came directly from the Economic Secretary to the Treasury, Emma Reynolds, during the FT Digital Asset Summit. She clarified that the UK will not follow the example set by the USA of accumulating digital assets at the national level. The approach was deemed unsuitable for the UK’s financial ecosystem.

However, the United Kingdom will continue to prioritize collaboration with the United States of America in the digital asset space. A bilateral working group of high-level officials has been established to strengthen regulatory dialogue. Emma Reynolds also announced a forum on digital asset regulation that is scheduled for June as part of the broader cross-border efforts.

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UK Rejects EU’s Markets in Crypto-Assets (MiCA) Regulation Model

The UK has rejected the EU’s Markets in Crypto-Assets (MiCA) regulation model completely. According to Reynolds, the UK will focus on outcome-based regulatory strategies. She stated: “We want to tailor our approach to the traditional financial sector rather than adopting rigid frameworks.”

At the moment, the country is experimenting with blockchain technology for sovereign debt issuance. The Treasury is currently in the procurement phase and hopes to select a supplier by the end of summer.

Steps Taken to Regulate the Crypto Industry

At the moment, the UK government has published a draft of legislation to regulate the crypto industry in the country. This bill also includes stablecoin issuances and exchanges. The proposal builds on the Financial Markets Act of 2023 and aims to create a more structured regulatory environment. The legislation is open for consultation until May 25.

Rachel Reeves, Finance Minister, emphasized that the goal of the new rules is to attract investment and support responsible growth in the digital sector. Additional regulations that will address disclosures and market abuse are expected to be added as well.

In separate news, the Lomond School in Helensburgh, Scotland, has announced that it will accept Bitcoin as payment for tuition in the fall of 2025. The school addressed the parental demand for this change and made this decision to show its commitment to innovation. Initially, tuition fees will be converted to pounds to minimize the currency risks. This initiative by Lomond School is the first known case of an educational institution in the UK accepting Bitcoin as payment. The progress may be slow, but the mainstream adoption of digital assets in the region is on the right track.