"Uphold Resumes Crypto Staking in UK After Regulatory Clarity"

Uphold, a digital payments platform, has resumed offering crypto staking services to UK customers following a regulatory update. The Treasury's amendment to the Financial Services and Markets Act 2000 exempts crypto staking from the "collective investment scheme" category, facilitating less regulated staking activities. The regulatory update, effective January 31, provides clarity for registered crypto-asset service providers to offer staking services in the UK market, allowing users to earn rewards for supporting blockchain networks.

Uphold customers can now stake digital assets including ETH, SOL, and NEAR, with some tokens offering returns up to 14.8% based on market conditions. Simon McLoughlin, CEO of Uphold, stated, "Staking is an inherent function of many blockchains. It creates a legitimate way for crypto holders to put their assets to work while supporting the validation process of a blockchain." The service is available through Uphold’s platform, which operates in more than 140 countries.

While Uphold reopened crypto staking in the UK, the company continues to suspend the service in the US due to regulatory uncertainty. The suspension came into force in late April 2023, following guidance from the US SEC.

Uphold's staking return in the UK comes amid recent financial policy changes related to the offering of crypto staking services in the country. On January 8, the UK Treasury amended a section of the Financial Services and Markets Act 2000 (FSMA) related to collective investment schemes or investments, enabling multiple investors to pool their funds. The Treasury specifically ordered that "arrangements for qualifying crypto asset staking do not amount to a collective investment scheme." By removing crypto staking from arrangements related to collective investments, the Treasury has given platforms like Uphold the green light to relaunch its staking services.

As Uphold resumes crypto staking in the UK, the services remain unavailable in many parts of the world, including in the US and Europe. McLoughlin expects to open staking services in both jurisdictions in the first half of this year. He expressed optimism over future regulatory developments for staking, stating, "With a crypto-friendly administration in the US, 2025 looks like a year we could see great progress. All these regulatory developments point to the same destination — a world where financial assets stored and