Uphold Resumes Crypto Staking in the UK After Regulatory Amendment

Cryptocurrency trading platform Uphold has officially resumed its staking services in the United Kingdom, marking a major return following a year-long suspension. The platform’s decision to restart staking follows recent regulatory changes introduced by the UK Treasury, which came into effect on January 31.

UK Treasury Clears Legal Gray Area for Crypto Staking

The move is a direct response to an amendment within the Financial Services and Markets Act 2000 (FSMA) that clarified the legal standing of crypto staking. Uphold CEO Simon McLoughlin expressed relief over the updated framework, stating that the platform initially halted staking due to unclear regulations.

On January 8, the UK Treasury revised financial policies concerning collective investment schemes, a category traditionally subject to strict regulatory scrutiny. The key amendment excluded “arrangements for qualifying crypto asset staking” from being categorized as collective investments, effectively freeing crypto staking from heavy oversight typically reserved for traditional assets like stocks and bonds.

According to McLoughlin, the regulatory clarification now provides “welcome certainty” and opens avenues for Uphold and other regulated crypto service providers to reintroduce staking services in the UK.

Staking, a process where participants lock up crypto assets to support blockchain operations and earn rewards, has long been a vital component of decentralized networks. With the new regulatory stance, Uphold hopes to enable more UK customers to engage in this activity without legal uncertainty.

Global Expansion Plans on the Horizon

While the return to staking in the UK is a positive development, Uphold’s services remain unavailable in several key markets, including the United States, Europe, Japan, and Canada. The company has indicated that it plans to relaunch staking in Europe and the US by mid-2025, pending favorable regulatory conditions.

McLoughlin remains optimistic about global regulatory advancements, noting that “with a crypto-friendly administration in the US, 2025 looks like a year we could see great progress.” He further emphasized the significance of staking in blockchain ecosystems, stating that recent changes point toward a future where “financial assets stored and managed on blockchains become mainstream activities.”