UK order clarifies crypto staking is not a collective investment scheme
The UK Treasury has amended The Financial Services and Markets Act 2000 to clarify that crypto staking does not qualify as a "collective investment scheme" (CIS). This change, effective January 31, defines "qualifying cryptoasset staking" as the validation of transactions on blockchain networks. Collective investment schemes are heavily regulated in the UK, requiring registration and compliance from managers. Staking allows users to lock up native tokens to validate transactions and earn rewards. The amendment aligns with the Treasury's commitment to develop a crypto regulatory framework by early 2025, addressing concerns from the local crypto industry regarding the regulation of staking services. Economic Secretary Tulip Siddiq emphasized the need to remove legal uncertainties surrounding staking.
