Uphold Resumes Crypto Staking in the UK After Treasury Amendment

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The world of cryptocurrency continues to evolve with shifting regulatory landscapes, and recent developments in the United Kingdom have reignited interest in one of the most popular passive income strategies: crypto staking. Uphold, a leading digital asset platform, has officially resumed offering staking services to users in the UK following a pivotal amendment by the UK Treasury. This regulatory shift marks a significant milestone for crypto adoption and opens new opportunities for investors seeking yield on their digital holdings.

A Regulatory Breakthrough for Crypto Staking

The UK Treasury recently updated the Financial Services and Markets Act 2000, removing crypto staking from the definition of a “collective investment scheme.” This change brings much-needed clarity to crypto-asset service providers operating in the region. Previously, ambiguous regulations forced platforms like Uphold to suspend staking offerings due to compliance concerns.

With the new framework in place, licensed crypto platforms can now legally offer staking services without being subjected to overly burdensome financial regulations. This distinction recognizes staking as a core blockchain function—network validation—rather than an investment product, aligning regulatory treatment with technological reality.

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Uphold’s Staking Relaunch: Assets and Rewards

Uphold has wasted no time capitalizing on this regulatory green light. The platform now allows eligible UK users to stake major proof-of-stake cryptocurrencies, including:

Users who participate in staking can earn rewards based on current market conditions, with annual percentage yields (APY) reaching up to 14.8%. These returns are dynamic and fluctuate depending on network demand, validator performance, and participation rates.

Staking not only offers financial incentives but also plays a crucial role in securing blockchain networks. By locking up their tokens, users help validate transactions and maintain decentralization—earning rewards in return.

To participate, users must meet minimum balance requirements for each supported asset and hold them within their Uphold accounts. The platform supports over 140 countries, though availability of staking remains restricted in regions with unclear or prohibitive regulations.

Why Staking Was Halted in the US and Europe

Despite progress in the UK, Uphold continues to face regulatory hurdles elsewhere. In April 2023, the company suspended staking operations in the United States following guidance from the Securities and Exchange Commission (SEC). The SEC has taken a strict stance, viewing certain staking programs as unregistered securities offerings, which places them under federal securities law.

Similarly, Uphold does not currently offer staking in Europe, Canada, Japan, or Singapore, where regulatory frameworks remain under development or overly restrictive. The company has expressed its intent to expand staking access globally, with planned rollouts expected in the first half of 2025—contingent on favorable regulatory outcomes.

Kraken’s US Staking Revival: A Parallel Development

In a parallel development, Kraken—another major crypto exchange—has also restarted its staking services in the United States after a two-year pause. The revival follows a settlement with the SEC in 2023 and reflects changing attitudes toward crypto regulation in key markets.

Kraken now offers staking for 17 digital assets across 39 US states, including:

Importantly, Kraken provides insurance protection for users who stake through its platform, mitigating risks associated with slashing penalties or validator failures. This added layer of security enhances user confidence and sets a precedent for responsible staking service design.

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Global Regulatory Outlook: A Shift Toward Clarity

The UK’s decision to exclude staking from collective investment rules could inspire other jurisdictions to adopt similar approaches. Clearer definitions reduce compliance burdens for platforms and encourage innovation within the crypto ecosystem.

Regulatory clarity is essential for mainstream adoption. When users understand how their activities are treated under the law—and when platforms can operate without fear of retroactive penalties—it fosters trust and long-term engagement.

Countries watching the UK’s model may consider re-evaluating their own staking policies, especially as blockchain technology becomes more integral to financial infrastructure.

Frequently Asked Questions (FAQ)

Q: Why did Uphold stop offering staking before?
A: Due to unclear regulations in the UK and active enforcement actions by regulators like the SEC in the US, Uphold paused staking to ensure compliance and avoid legal risk.

Q: Can anyone stake on Uphold?
A: No—only eligible users in supported regions (currently including the UK) can access staking. Users must hold qualifying assets and meet minimum balance requirements.

Q: Is crypto staking safe?
A: While generally secure, staking carries risks such as price volatility and potential slashing penalties (for self-stakers). Platforms like Uphold and Kraken mitigate these risks through pooled validation and insurance mechanisms.

Q: How are staking rewards calculated?
A: Rewards depend on network conditions, total stake volume, and validator efficiency. Yields are variable and can change over time.

Q: Will Uphold bring staking to the US soon?
A: There is no confirmed timeline, but the company is actively monitoring regulatory developments and aims to expand services where legally permissible.

Q: Are staking rewards taxable?
A: In most jurisdictions, including the UK and US, staking rewards are considered taxable income at the time they are received. Users should consult local tax authorities or professionals for guidance.

Looking Ahead: The Future of Staking in 2025

As we move further into 2025, crypto staking is emerging as a cornerstone of decentralized finance (DeFi) and blockchain sustainability. With regulatory clarity improving in key markets like the UK, more platforms are expected to relaunch or expand staking services.

Uphold’s reentry into the UK staking market signals growing confidence in digital assets as legitimate financial instruments. Combined with Kraken’s resurgence in the US, these moves reflect a broader trend: regulators are beginning to distinguish between speculative investments and core blockchain utilities.

For users, this means greater access to tools that generate passive income while contributing to network security. As adoption grows, so too will demand for user-friendly, compliant, and secure staking solutions.

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This evolving landscape underscores the importance of staying informed about both technological opportunities and regulatory developments. Whether you're a seasoned investor or new to digital assets, understanding staking—and where it's available—can help you make smarter financial decisions in the rapidly changing world of Web3.