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

According to CryptoSlate, the UK Treasury has revised the Financial Services and Markets Act (FSMA), which will take effect on January 31, to exclude cryptocurrency staking from the classification of collective investment schemes. According to this change, pledging ETH and SOL will only be considered as a blockchain verification process and will no longer be subject to regulatory requirements applicable to collective investment schemes. Previously, due to vague regulatory definitions, pledges had the risk of being classified as traditional collective investment instruments, which were subject to stricter FSMA regulations. The amendment clarifies that staking involves participants locking cryptocurrency to verify blockchain transactions and ensure network security, which is fundamentally different from collective investment schemes and requires a tailored regulatory framework. ConsenSys' lawyer Bill Hughes welcomed this move, stating that it is an important step for the industry and emphasizing that UK law has traditionally taken strong regulatory measures against collective investment schemes, which may hinder industry development. It is worth noting that this move is consistent with the UK's broader strategy of promoting innovation in the cryptocurrency sector while maintaining appropriate regulation to protect market participants.