Uphold resumes UK staking services after regulatory shift

Uphold, a cryptocurrency trading platform, announced the reinstatement of its staking services in the United Kingdom (TADAWUL:4280), CoinTelegraph reported.

This move follows a change in local regulations, which has provided clearer legal guidance for crypto staking services. The UK Treasury recently amended the Financial Services and Markets Act 2000 (FSMA), specifically clarifying that arrangements for qualifying crypto asset staking are not considered collective investment schemes. This amendment, which took effect on January 31, has allowed platforms like Uphold to once again offer staking services to their UK customers.

The relaunch in the UK comes after a year-long suspension of staking services by Uphold in the UK and the European Union due to regulatory uncertainties. Uphold CEO Simon McLoughlin stated, "We stopped offering staking services to UK customers previously because it was a legal gray area." However, with the UK Treasury’s latest amendment, there is now a clearer path for regulated crypto service providers to reintroduce these services.

Staking is a process that allows cryptocurrency holders to earn rewards for participating in network operations, such as validating transactions. It is considered a crucial activity in many blockchain networks. The UK Treasury’s decision to exclude crypto staking from collective investment schemes, which typically face stringent regulatory scrutiny, has been seen as a positive development for the industry. McLoughlin commented on the importance of this regulatory clarity, saying, "The amendment that came into force on Jan. 31 provides welcome certainty and clears the way for regulated crypto service providers to offer staking services to UK customers."

While staking services have resumed in the UK, Uphold notes that staking is still not available in several other regions, including the United States, Canada, Europe, Japan, Venezuela, Singapore, and other jurisdictions where Uphold’s services are generally not offered.

McLoughlin expressed optimism about the future of staking services, indicating plans for Uphold to expand these services to Europe and the US by June 2025. He also highlighted the potential for further regulatory progress in the US, citing a crypto-friendly administration and the possibility of significant advancements in the year 2025. McLoughlin concluded with a positive outlook on the integration of blockchain-managed financial assets into mainstream activities, spurred by ongoing regulatory developments.

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