Staking will no longer be considered a collective investment scheme in the UK, according to a recent amendment by the UK Treasury.

UK authorities have It has been updated Section of the Financial Services and Markets Act 2000, which regulates financial markets in the UK, to clarify that cryptocurrency signing is not a “collective investment scheme”.

Staking is a process in which blockchain users lock network tokens for the opportunity to participate in the validation of transactions on proof-of-stake blockchain networks such as Ethereum. In return, participants receive rewards, usually in the form of additional tokens.

The Treasury Department's amendment clarifies that staking does not fit the definition of a collective investment plan. CIS involve arrangements in which individuals pool their money to generate dividends or shared income, such as exchange-traded funds or mutual funds.

They are regulated by the UK Financial Conduct Authority, requiring registration, licensing and ongoing compliance by authorized managers to ensure investor protection.

The updated law explicitly states that “arrangements for qualifying stakes in crypto assets do not amount to a collective investment scheme,” distinguishing staking from traditional investment models.

The amendment will come into force from January 31 and applies to all four countries that make up the United Kingdom.

Commenting on this development, Bill Hughes, a lawyer at Consensys, described it as a positive step, noting that “the way blockchain works is not an investment scheme” but rather a form of “cybersecurity”.

This clarification is in line with broader efforts by British officials to regulate crypto assets and mortgage services in a way that fosters innovation while reducing legal uncertainty.

Ditto I mentioned By crypto.news, in November, Treasury Department Announce It plans to introduce cryptocurrency legislation, with a focus on stablecoins and mortgage relief to make the UK more attractive to blockchain companies.

In October, a proposal was made to classify digital assets as personal property foot In Parliament in response to a consultation paper published by the Law Commission, which recommended the inclusion of digital assets within property law.