The transition from a government in the United Kingdom run by the Conservative Party to one under Labour has some asking what Prime Minister Keir Starmer may do with the country’s Bitcoin holdings.
According to data from crypto intelligence platform Arkham, the UK government held roughly 61,245 Bitcoin (BTC) as of July 19, worth more than $4 billion. The recently appointed UK Chancellor of the Exchequer, Rachel Reeves, likely has the discretion to allocate the funds, most of which had been seized as part of a money laundering case against hospitality worker Jian Wen.
Though there may be some bureaucratic hurdles to overcome, MP Reeves may have the option of liquidating the Bitcoin holdings as part of the Labour government’s plans to promote economic stability and growth. A policy statement read by King Charles III on July 17 suggested Labour would prioritize building affordable housing and improving the nation’s rail system.
Prime Minister Starmer has largely been silent on crypto as a Labour policy objective, but his government introduced 40 bills on July 17 as part of the King’s speech. As Shadow City Minister and Shadow Economic Secretary before the July 4 election, MP Tulip Siddiq suggested that she intended to crack down on crypto regulations.
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With more than 61,000 BTC, the UK has one of the biggest stockpiles of Bitcoin among world governments, second only to the United States. The German government liquidated its 49,858 BTC holdings over several transactions in June and July, netting it roughly $2.8 billion. It’s unclear what Germany intends to do with the funds.
The timing of bullish and bearish events in the crypto space could impact when MP Reeves considers selling, if at all. Analysts have suggested that the leadup to the US Presidential election could favor crypto markets, but payouts from BTC holdings previously frozen at Mt. Gox could similarly cause the Bitcoin price to fall.
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