The post UK Treasury Confirms Crypto Staking Rules Effective January 31 appeared on BitcoinEthereumNews.com.

The UK Treasury said crypto staking is not a collective investment scheme. With its pro-crypto stance, the UK is becoming a hub for digital currencies. The UK Treasury, the government’s economic and finance ministry, has revised regulations regarding crypto staking. Under the new revision, the Treasury clarified that crypto staking is not a “collective investment scheme.” Impact of the New Rules on Crypto Staking  Users The new amendment, which will come into effect on January 31, 2025, is a positive step for those involved in staking. Staking involves blockchain users locking up a network’s native token for a specific time.  These users help validate on-chain transactions on proof-of-stake blockchain networks like Ethereum and Solana. Participants earn rewards in exchange, usually in the form of additional tokens. Under the new rules, staking will no longer fall under the same regulations as investment funds like ETFs and investment funds. The amended rules specifically separate staking from traditional investment methods. The UK Treasury emphasized that staking rewards users for protecting the network rather than pooling funds for shared profits. Meanwhile, traditional investment funds are subject to strict regulatory frameworks like the requirement of authorization and registration. The amended rules specify ‘ separating staking from traditional investment methods. The Treasury’s recent action has received widespread applause within the crypto industry. In an X post, Bill Hughes from Consensys explained that staking is primarily about network security, not investment. According to Hughes, this characteristic distinguishes it from collective investment schemes focused on the traditional market and generating financial returns. 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 —…

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Filed under: News - @ January 11, 2025 4:18 pm