The UK Treasury has updated its financial legislation, specifying that crypto staking does not qualify as a collective investment scheme. This allows crypto firms to operate staking services without the burdensome regulations normally associated with CIS. The aim is to facilitate blockchain operations by removing unnecessary regulatory hurdles.

The amendment to the Financial Services and Markets Act 2000 is being hailed as a positive development by industry participants. Sebastian Higgs and others support the change as it marks significant progress in the UK’s approach to regulating the crypto industry. This amendment introduces clarity, facilitating the effective operation of blockchain and staking arrangements.