UK Labour Government Inherits $4B Bitcoin Stash, Prime Minister Starmer Silent on Crypto Policy

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

The United Kingdom government’s recent shift from Conservative to Labour leadership has prompted speculation regarding the fate of the country’s substantial Bitcoin ( BTC ) holdings.

According to data from crypto intelligence platform Arkham, the UK government held approximately 61,245 Bitcoin as of July 19. These holdings, which were largely seized as part of a money laundering case against hospitality worker Jian Wen, are valued at over $4 billion at the current market price.

While bureaucratic obstacles may need to be addressed, UK Chancellor of the Exchequer Rachel Reeves could potentially allocate these funds as part of the Labour government’s initiatives to foster economic stability and growth. A policy statement read by King Charles III on July 17 indicated that Labour would prioritize constructing affordable housing and enhancing the nation’s rail system.

Prime Minister Keir Starmer has generally not discussed cryptocurrency as a Labour policy objective, despite his government introducing 40 bills on July 17 as part of the King’s speech. However, MP Tulip Siddiq, who served as Shadow City Minister and Shadow Economic Secretary prior to the July 4 election, has expressed her intention to tighten crypto regulations.

With over 61,000 BTC, the UK possesses one of the largest stockpiles of Bitcoin among world governments, surpassed only by the United States. In contrast, the German government fully liquidated its 49,858 BTC holdings over several transactions in June and July, netting it approximately $2.8 billion. It remains uncertain what Germany will do with these funds.

The timing of bullish and bearish events in the crypto space could influence when MP Reeves considers selling, if at all. According to analysts, the leadup to the US Presidential election could benefit crypto markets, while payouts from BTC holdings frozen at Mt. Gox could drive down the Bitcoin price.

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