In the United Kingdom, the transition from a Conservative-led government to a Labour-led government has led some to question what Prime Minister Keir Starmer might do with the country’s Bitcoin holdings. According to data from the crypto analysis platform Arkham, as of July 19, the UK government holds approximately 61,245 Bitcoin, valued at over $4 billion.
Bitcoin Debate in the UK
Recently appointed UK Chancellor of the Exchequer Rachel Reeves is likely to have the discretion to allocate funds seized as part of a money laundering case against hospitality worker Jian Wen.
Despite some bureaucratic hurdles, MP Reeves may have the option to liquidate 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 that the Labour Party would prioritize affordable housing construction and improving the country’s railway system.
Prime Minister Starmer has largely remained silent on crypto as a Labour Party policy goal, but his government introduced 40 bills as part of the King’s speech on July 17. Before the July 4 elections, Shadow City Minister and Shadow Economic Secretary MP Tulip Siddiq suggested she planned to take a stringent approach to crypto regulations.
Details on the Matter
With over 61,000 Bitcoin, the UK holds one of the largest Bitcoin reserves among world governments, ranking second after the US. The German government liquidated 49,858 Bitcoin in various transactions in June and July, netting approximately $2.8 billion. It is unclear what Germany plans to do with the funds.
The timing of bullish and bearish events in the crypto space may influence MP Reeves’ decision to sell. Analysts suggested that progress toward the US Presidential elections could favor crypto markets, but payments from previously frozen Mt. Gox Bitcoin holdings could similarly cause Bitcoin prices to drop.
