On January 10, 2025, the UK Treasury announced an amendment to the Financial Services and Markets Act 2000, clarifying that crypto staking for blockchains like Ethereum (ETH) and Solana (SOL) will not be classified as a collective investment scheme (CIS). This change, effective January 31, aims to foster innovation by removing the heavy regulatory burden typically associated with CIS, which includes strict compliance measures.
The amendment defines 'qualifying cryptoasset staking' as the process of validating transactions on a blockchain, distinguishing it from traditional pooled investment vehicles. Bill Hughes, a lawyer at Consensys, praised the move, stating, 'The way a blockchain works is NOT an investment scheme. It's cybersecurity.'
This regulatory clarity is expected to enhance the operational environment for businesses and individuals involved in blockchain staking, aligning with the UK government's strategy to support the crypto sector while ensuring appropriate oversight. The amendment is part of a broader initiative announced in November 2024 to develop regulations that encourage innovation in the crypto market.