On January 10, news reported by CryptoSlate stated that the UK Treasury has revised the Financial Services and Markets Act (FSMA), which will take effect on January 31, excluding cryptocurrency staking from the classification of collective investment schemes. According to this change, staking in ETH and SOL will be regarded solely as a blockchain validation process and will no longer be subject to the regulatory requirements applicable to collective investment schemes. Previously, due to ambiguous regulatory definitions, there was a risk that staking could be classified as traditional collective investment vehicles, which must comply with stricter FSMA regulations. The amendment clarifies that staking involves participants locking up cryptocurrency to validate blockchain transactions and ensure network security, which is fundamentally different from collective investment schemes and requires a tailored regulatory framework. Bill Hughes, a lawyer at ConsenSys, welcomed this move, considering it an important step for the industry and emphasizing that UK law has traditionally taken a stringent regulatory approach to collective investment schemes, which could hinder industry development. Notably, this move aligns with the UK's broader strategy to promote innovation in the cryptocurrency space while maintaining appropriate regulation to protect market participants.

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