UK: ”Cryptocurrency staking is not a collective investment product” - providing legal clarity

The UK Treasury has said that staking of cryptocurrencies that are required for proof-of-stake blockchains such as Ethereum and Solana cannot be considered a collective investment product.
According to Cointelegraph, on the 9th (local time), the UK Treasury amended the provisions related to collective investments in the Financial Services and Markets Act 2000 on the 8th to allow the stock of eligible virtual currencies.
The amendment adds that staking will not be considered a collective investment product, which is generally a highly regulated scheme.
The bill explicitly states that this means verifying transactions using a distributed ledger technology network or similar technology. The amendment will come into effect on January 31.
Bill Hughes, counsel and global regulatory director at Consensys,
On the 9th, Hughes told X, "This amendment is a positive development, because the management and public relations of CIS are very strictly regulated."
"The way the system works is not an investment mechanism. It's cyber security," he added.