PANews reported on January 10, according to CryptoSlate, that the UK Treasury has amended the Financial Services and Markets Act (FSMA), which will take effect on January 31, excluding cryptocurrency staking from the classification of collective investment schemes. Under this change, staking with ETH and SOL will only be considered part of the blockchain validation process and will no longer be subject to the regulatory requirements applicable to collective investment schemes. Previously, due to vague regulatory definitions, there was a risk that staking could be classified as traditional collective investment tools, which must comply with stricter FSMA regulations.
The amendment clarifies that staking involves participants locking up cryptocurrency to verify blockchain transactions and ensure network security, which is fundamentally different from collective investment schemes and requires a tailored regulatory framework. ConsenSys lawyer Bill Hughes welcomed the move, viewing it as an important step for the industry, and emphasized that UK law has traditionally taken a tough regulatory stance on 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.
