Ethereum and Solana staking no longer classified as collective investment schemes in the UK

The UK Treasury has introduced an amendment to the Financial Services and Markets Act 2000 (FSMA), effective January 31, to exclude crypto staking from being classified as a collective investment scheme.

Under this change, staking will be recognized solely as a process for blockchain validation, no longer subject to the regulatory requirements applicable to collective investment schemes.

Previously, vague regulatory definitions created the risk of categorizing staking alongside traditional pooled investment vehicles, which are subject to stricter FSMA regulations.

The amendment clarifies that staking, which involves participants locking crypto to validate blockchain transactions and secure the network, is fundamentally different and warrants a tailored regulatory framework.

welcomed the move as a significant step for the industry, emphasizing that UK law traditionally regulates collective investment schemes with a heavy-handed approach which would have stifled growth.