Author Victoria Lyapota Reading time 2 minutes Published date 07/19/2024 Updated date 07/19/2024
As the United Kingdom transitions from a Conservative-led to a Labour-led government, some are wondering what Prime Minister Keir Starmer might do with the country’s Bitcoin reserves.
According to cryptocurrency intelligence platform Arkham, the UK government owns approximately 61,245 Bitcoin (BTC), worth more than $4 billion, as of July 19. The UK’s newly appointed Chancellor of the Exchequer, Rachel Reeves, may have discretion over how to allocate these funds, most of which were seized in the money laundering case against hotel worker Jane Wen.
Although there may be some bureaucratic hurdles to overcome, Reeves may be able to liquidate his Bitcoin assets as part of the Labour government’s plans to promote economic stability and growth. A policy statement read out by King Charles III on July 17 said Labour would prioritize building affordable housing and improving the national rail system.
Source: Rachel Reeves MP
Prime Minister Starmer has been largely silent on making cryptocurrency a Labour policy goal, but his government introduced 40 bills in the King’s Speech on July 17. And in her role as Shadow Cities Minister and Shadow Economy Secretary ahead of the July 4 general election, MP Tulip Siddiq said she intended to tighten cryptocurrency rules.
Related: UK Crypto Advocates Call for Coherent Policy After Labour Victory
The United Kingdom has more than 61,000 Bitcoins, one of the largest Bitcoin reserves in the world, second only to the United States. The German government liquidated its holdings of 49,858 BTC in multiple transactions in June and July, netting about $2.8 billion. It is unclear how Germany intends to use the funds.
The timing of bullish and bearish events in the cryptocurrency space could influence when Rep. Reeves would consider selling, if at all. Analysts speculate that the approaching U.S. presidential election could be good for the cryptocurrency market, but a possible increase in spending of BTC assets previously frozen at Mt. Gox could also cause a drop in Bitcoin prices.
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