The UK Treasury has officially updated its regulations, confirming that crypto staking will no longer be classified as a Collective Investment Scheme (CIS) under the Financial Services and Markets Act 2000. Effective January 31, this change aims to differentiate staking from traditional investment structures like mutual funds or exchange-traded funds.
Staking, a process where users lock blockchain tokens to validate transactions on proof-of-stake networks (e.g., Ethereum) in exchange for rewards, was previously unclear in its regulatory treatment. The new amendment clarifies that staking does not meet the legal definition of a CIS, which typically involves pooled funds for shared profits and is regulated by the UK Financial Conduct Authority (FCA).
THE UK JUST LAUNCHED A NEW CRYPTO RULEBOOK
🇬🇧 Stablecoin issuers now need to hold less capital under the new rules.
There are also new requirements for exchanges, wallets, and staking.
Those include FCA approval, customer fund protections, and market abuse safeguards.
Applications open in September 2026. Rules take effect in October 2027.
— Crypto Rover (@cryptorover) June 30, 2026
What counts as staking?
Under the revised framework, staking services will no longer face the stringent registration, authorization, and compliance requirements imposed on collective investment schemes. Instead, the amendment positions staking as a distinct blockchain operation rather than a conventional financial product.
This regulatory update aligns with the UK government’s broader strategy to balance industry oversight with fostering blockchain innovation. Bill Hughes, a lawyer at Consensys, applauded the change, emphasizing that staking serves as a cybersecurity mechanism rather than an investment vehicle.
The amendment complements other initiatives by the Treasury to develop crypto-specific legislation, including regulations for stablecoins and further exemptions for blockchain-based activities. These efforts are designed to make the UK an attractive destination for blockchain firms while reducing regulatory uncertainty.
Also Read: UK FCA Proposes Ban on Public Crypto Offers by Unregulated Firms in New Oversight Push
Meanwhile, a recent FCA report highlighted rising cryptocurrency awareness in the UK, with familiarity increasing from 91% to 93% of residents in 2024. The average value of crypto holdings also grew from £1,595 to £1,842. Notably, family and friends emerged as the primary source of crypto knowledge among those new to the space, while 10% admitted to investing without prior research. Despite these trends, the FCA reiterated its warnings about crypto’s unregulated status, cautioning investors about associated risks.
The FCA has now published the detailed rules
The UK’s regulatory framework has moved considerably beyond the original Treasury clarification. Parliament passed the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 in February 2026. The FCA published its final rules and guidance in June, covering areas including trading platforms, intermediaries, lending and borrowing, staking and decentralized finance. The regime is scheduled to come into effect on October 25, 2027.
That gives crypto firms time to prepare for authorization and compliance requirements before the new regulatory perimeter becomes fully operational.
The FCA has also published perimeter guidance explaining which crypto activities will require authorization and how the new rules apply.
What this means for crypto firms
The clearer regulatory treatment could make the UK easier for staking businesses to navigate. Before the new framework, firms had to consider whether certain staking structures could accidentally fall within existing financial-services rules that were not designed specifically for blockchain validation.
But firms offering staking services now have another question to answer: will their business model require FCA authorization once the new crypto regime comes into force? For companies offering pooled staking, liquid staking or staking-as-a-service products, that distinction could determine how they structure their UK operations.
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