The post UK Treasury exempts crypto staking from “collective investment scheme” rules appeared on BitcoinEthereumNews.com.

The UK Treasury has announced that the proof-of-stake mechanisms underlying certain blockchains, such as Ethereum and Solana, will not be considered collective investment schemes(CIS). This is a good development for crypto since CIS is heavily regulated. The order from the Treasury amends part of the Financial Services and Markets Act 2000, which concerns group investments. It clarifies that “arrangements for qualifying crypto asset staking do not amount to a collective investment scheme”.  The order, which will take effect on January 31, states that  “qualifying crypto asset staking” means authenticating contracts on the blockchain, a distributed ledger technology network, or “other similar technology.” Blockchain technology operations present a cybersecurity issue According to Bill Hughes, director of global regulatory matters and Consensys’ lawyer, the amendment is a good development for crypto staking because there are strict regulations on managing and promoting CIS. He added that the way blockchain operates shouldn’t be construed as an investment but rather as cybersecurity. Good news frens. It looks like that, by the end of the month, proof of stake mechanisms underlying certain blockchains (e.g. #Ethereum #Solana) will not be considered collective investment schemes under UK law. This is a good development because the management and promotion of… pic.twitter.com/JJgEO5rmPP — Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) January 9, 2025 The UK categorizes collective investment schemes as any disposition where participants earn profits or income, including investment funds and exchange-traded funds (ETFs.) The Financial Conduct Authority takes its mandate very seriously in regulating CIS. Before venturing into collective investment schemes, one must register and get authorization. Also, agency-approved monitors will continuously check the ongoing compliance commitments. Staking is a process that allows network participants to earn rewards by locking their native coins to validate transactions in blockchains such as Ethereum and Solana. UK takes a step towards achieving…

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Filed under: News - @ January 10, 2025 5:23 am