UK Creates Crypto Staking Regulatory Carveout

The United Kingdom is set to codify that crypto staking arrangements do not qualify as “collective investment schemes.”

What’s the Scoop?

• Regulatory Relief: On Thursday, the UK Treasury introduced a bill to Parliament that seeks to amend the Financial Services and Markets Act 2000 by exempting staking arrangements for “qualified cryptoassets” from financial regulation as “collective investment schemes.”
• Imminent Implementation: The amendment is expected to take effect on January 31, 2025, and will preclude qualifying crypto staking arrangements from mandatory compliance with regulations that could hinder “the effective operation of blockchains and staking arrangements provided to customers in the United Kingdom."

Bankless Take:

Under the UK Treasury’s recently proposed amendment, crypto staking providers who utilize native tokens – like ETH and SOL – for “blockchain validation” will not be required to register their products with financial authorities. This is a major win for crypto asset staking providers, who would face increased compliance burdens if subject to regulation.