The UK Treasury has updated a law to specify that crypto staking, essential for proof-of-stake blockchains like Ethereum and Solana, does not fall under the category of a 'collective investment scheme,' which is typically heavily regulated. The amendment, effective from Jan. 31, states that arrangements for qualifying cryptoasset staking do not constitute a collective investment scheme. Staking involves validating transactions on a blockchain or similar technology, not an investment scheme. This move is welcomed by industry experts, as collective investment schemes in the UK are subject to strict regulations by the Financial Conduct Authority. The Treasury's action aligns with its commitment to introduce a crypto regulatory framework by early 2025, covering staking services, stablecoins, and crypto in general. The local crypto sector advocated for this clarification, which was supported by Economic Secretary Tulip Siddiq. This development provides clarity and certainty for stakeholders in the crypto space. Read more AI-generated news on: https://app.chaingpt.org/news

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