According to a recent amendment from the British Treasury, striking will not be considered a collective investment scheme in the United Kingdom.
The British authorities did that updated a section of the Financial Services and Markets Act 2000, which regulates financial markets in Britain, to clarify that crypto staking is not a ‘collective investment scheme’.
Staking is a process by which blockchain users lock a network’s native tokens for a chance to participate in transaction validation on proof-of-stake blockchain networks such as Ethereum. In return, participants earn rewards, usually in the form of additional tokens.
The amendment from the Ministry of Finance clarifies that a strike does not fit the definition of a collective investment scheme. A CIS includes arrangements where individuals pool their funds for shared profits or income, such as exchange-traded funds or mutual funds.
These are regulated by the UK Financial Conduct Authority and require registration, authorization and ongoing compliance by approved managers to ensure investor protection.
The updated law explicitly states that “arrangements for qualifying the stake of crypto assets do not amount to a collective investment plan,” distinguishing staking from traditional investment models.
The change will come into effect from January 31 and will apply to all four countries of the United Kingdom.
Commenting on the development, Bill Hughes, a lawyer at Consensys, described it as a positive step, stating that “the way a blockchain works is not an investment scheme” but rather a form of “cyber security”.
This clarification is consistent with broader efforts by UK officials to regulate crypto assets and staking services in a way that promotes innovation while reducing legal uncertainty.
As previously reported by crypto.news, the Treasury announced plans in November to introduce crypto-specific legislation, focusing on stablecoins and staking exemptions to make the UK more attractive to blockchain companies.
In October, a proposal to categorize digital assets as personal property was presented in Parliament in response to a consultation paper published by the Law Commission, which recommended including digital assets in the law of ownership.
