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.
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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.
Uphold resumes crypto staking services in UK
Cryptocurrency trading platform Uphold has resumed its staking services in the UK, following a UK Treasury amendment that took effect on Jan. 31, according to Cointelegraph. The amendment, made to the Financial Services and Markets…
— CoinNess Global (@CoinnessGL) February 3, 2025
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.
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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.
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