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The UK Treasury has introduced changes to a law specifying that cryptocurrency staking does not fall within the definition of "collective investment scheme." This type of scheme is usually subject to strict regulations.

According to a recent department order dated January 8, a section of the Financial Services and Markets Act 2000 relating to collective investments has been amended to state that crypto asset staking activities do not qualify as a collective investment scheme.

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The update clarifies that this type of staking involves the validation of transactions on a blockchain or other similar technological networks.

The revised law will come into force on January 31.

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