Altcoins

Uphold Resumes Crypto Staking Services In UK Amid Regulatory Shifts

By Ruholamin Haqshanas

Last Updated: Feb 3, 2025

Fact checked

By Akriti Seth

Uphold Resumes Crypto Staking Services in the UK Amid Regulatory Shifts

Cryptocurrency exchange Uphold has reinstated its staking services in the UK, following key regulatory changes that provided clarity on the legality of staking.

The relaunch marks a significant shift from a year ago when the platform had suspended staking in the UK and the European Union (EU) due to regulatory uncertainty.

The decision to resume services follows an amendment by the UK Treasury, which took effect on 31 January 2025. The change modifies the Financial Services and Markets Act 2000 (FSMA), specifically addressing collective investment schemes.

EXPLORE: 15 New & Upcoming Coinbase Listings to Watch in 2025

UK Removes Staking From Collective Investment Rules

Under the new provision, qualifying crypto asset staking is no longer classified as part of a collective investment scheme, allowing firms like Uphold to legally offer staking to UK investors.

Uphold CEO Simon McLoughlin welcomed the amendment, stating that the change “provides welcome certainty and clears the way for regulated crypto service providers to offer staking services to UK customers.”

He explained that Uphold had previously halted staking in the UK due to a legal gray area, making it difficult for platforms to operate without regulatory risks. With the Treasury’s updated stance, staking now has a clearer legal framework, enabling platforms to restore services with greater confidence.

Despite the progress in the UK, Uphold’s staking services remain unavailable in several major jurisdictions, including the United States, Europe, Canada, Japan, Venezuela, and Singapore.

However, McLoughlin expressed optimism, stating that the company aims to resume staking in the US and Europe within the first half of 2025.

Looking ahead, McLoughlin remains hopeful about broader regulatory acceptance of staking worldwide. He emphasized that staking is fundamental to many blockchain networks, allowing users to earn rewards while securing decentralized systems.

He also pointed out that with a more crypto-friendly stance expected in the US by 2025, significant regulatory advancements could further integrate blockchain-based financial services into mainstream markets.

EXPLORE: Best New Cryptocurrencies to Invest in 2025

UK FCA Rejects 90% of Crypto Firms Seeking Registration

As reported, nearly 90% of cryptocurrency firms applying for registration in the United Kingdom over the past year have been turned down by the FCA.

The high rejection rate stems from the firms’ failure to meet necessary standards, particularly in areas related to fraud prevention and anti-money laundering protocols. The FCA revealed that only four of the 35 crypto firm applications submitted in the last 12 months were approved.

The UK has increased regulatory scrutiny on the cryptocurrency sector, following several high-profile bankruptcies last year. Last year, the FCA introduced new regulations requiring all crypto firms to register with the financial watchdog.

EXPLORE: 10 Coins with High Returns: Crypto Forecast 2025

Free Bitcoin Crash Course

  • Enjoyed by over 100,000 students.
  • One email a day, 7 days in a row.
  • Short and educational, guaranteed!

Why you can trust 99Bitcoins

10+ Years

Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.

90hr+

Weekly Research

100k+

Monthly readers

50+

Expert contributors

2000+

Crypto Projects Reviewed

Google News Icon
Follow 99Bitcoins on your Google News Feed
Get the latest updates, trends, and insights delivered straight to your fingertips. Subscribe now!
Subscribe now
Disclaimer Icon
Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Ruholamin Haqshanas
Ruholamin Haqshanas
Crypto Journalist

Ruholamin Haqshanas is an accomplished crypto and finance journalist with over three years of experience. He has been featured in various high-profile outlets, including Cryptonews.com, Investing.com, 24/7 Wall St, and Business2Community. Read More

Back to top