TLDR
- The UK Treasury amended regulations to exempt crypto staking from “collective investment scheme” classification, allowing easier staking services
- Uphold has resumed offering staking services to UK customers as of January 31, 2024
- Users can stake ETH, SOL, and NEAR with potential returns up to 14.8%
- The service remains suspended in the US due to SEC regulations
- Uphold operates in over 140 countries but has different service availability based on local regulations
Digital payments platform Uphold has restarted its cryptocurrency staking services in the United Kingdom, following a recent amendment to financial regulations by the UK Treasury. The change, which took effect on January 31, 2024, removes crypto staking from the “collective investment scheme” category.
The regulatory update provides clarity for registered crypto-asset service providers operating in the UK market. This change allows companies like Uphold to offer staking services with fewer restrictions, opening up new opportunities for UK cryptocurrency holders.
Under the new framework, UK customers can now stake various digital tokens through Uphold’s platform. The available cryptocurrencies include popular options such as Ethereum (ETH), Solana (SOL), and NEAR. According to the company, some tokens offer returns as high as 14.8%, though these rates can vary based on market conditions.
Uphold CEO Simon McLoughlin explained the importance of staking in the blockchain ecosystem. “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,” he stated in a company press release.
The platform aims to make staking accessible to its UK user base. McLoughlin emphasized their commitment to creating a user-friendly experience, stating that Uphold will “make accessing staking rewards easier than any other platform.”
For UK customers interested in participating, there are minimum balance requirements for each supported Proof of Stake (PoS) token. Once these requirements are met, users can engage in transaction validation and earn rewards through the platform.
The resumption of staking services in the UK marks a contrast with Uphold’s operations in the United States. The company continues to suspend staking services for US customers, a decision made in late April 2023 following guidance from the Securities and Exchange Commission (SEC).
Uphold maintains a broad international presence, operating in more than 140 countries worldwide. However, the availability of specific services varies by region due to different regulatory requirements and restrictions.
The Treasury’s amendment to the Financial Services and Markets Act 2000 represents a clear regulatory framework for crypto staking in the UK. This change allows registered providers to offer staking services with greater certainty about their legal standing.
For UK cryptocurrency holders, the return of Uphold’s staking services provides another option for earning rewards on their digital assets. Users can now participate in blockchain network validation while potentially earning returns on their holdings.
The platform’s staking service operates through their existing infrastructure, allowing customers to manage their staking activities alongside other cryptocurrency services offered by Uphold.
The regulatory update affects not only Uphold but all registered crypto-asset service providers in the UK market. This change could lead to increased competition in the UK crypto staking sector.
McLoughlin highlighted the practical benefits for users, noting that the service allows crypto holders to actively participate in blockchain networks while earning rewards.
The minimum balance requirements vary by token, with different thresholds for ETH, SOL, and NEAR staking. These requirements ensure participants have a sufficient stake in the network they’re supporting.
While the UK market opens up to staking services, Uphold continues to adapt its offerings based on local regulations in different jurisdictions. The company maintains compliance with regulatory requirements across its operating regions.
