According to TechFlow, the UK Treasury amended the Financial Services and Markets Act 2000 on January 8, clarifying that cryptocurrency pledges do not fall within the scope of collective investment schemes (CIS). The new regulations will take effect on January 31.
Bill Hughes, global regulatory affairs director at Consensys, said this is a positive development because CIS is strictly regulated in the UK. He stressed that the way blockchain works is not an investment plan, but cybersecurity.
The move is part of a commitment made by Tulip Siddiq, the UK Treasury’s economic secretary, in November last year to launch a full cryptocurrency regulatory framework by early 2025.