Uphold has reinstated its staking services in the United Kingdom, following key regulatory changes that provided clarity on the legality of staking.
This decision marks a notable difference from the previous year when the platform had suspended staking in the UK and the European Union (EU) due to regulatory uncertainty.
The resumption comes after an amendment by the UK Treasury, effective January 31, 2025, to the Financial Services and Markets Act 2000 (FSMA), specifically addressing collective investment schemes.
UK Removes Staking From Collective Investment Rules
Under the new provision, qualifying crypto asset staking is no longer classified as part of a collective investment scheme, which allows firms like Uphold to legally offer staking services to UK investors. Uphold CEO Simon McLoughlin hailed the amendment, stating that it provides “welcome certainty and clears the way for regulated crypto service providers to offer staking services to UK customers.”
McLoughlin noted that previous legal ambiguities made it challenging for platforms to operate without regulatory risks. With these changes, staking now has a clearer legal framework, allowing platforms to operate with greater confidence.
Despite advancements in the UK, Uphold’s staking services remain unavailable in several other important markets, such as the United States, Europe, Canada, Japan, Venezuela, and Singapore. However, McLoughlin expressed optimism about restarting services in the US and Europe in the first half of 2025.
He underscored that staking is vital to many blockchain networks, enabling users to earn rewards while contributing to the security of decentralized systems. McLoughlin also pointed out that with a more crypto-friendly outlook anticipated in the US by 2025, significant regulatory changes could further integrate blockchain-based financial services into mainstream markets.
UK FCA Rejects 90% of Crypto Firms Seeking Registration
Recent reports indicate that nearly 90% of cryptocurrency firms applying for registration in the UK have been denied by the FCA. The high rejection rate is attributed to these firms failing to meet necessary standards concerning fraud prevention and anti-money laundering protocols.
