The UK seems green with envy of the popularity of the US’s new pro-crypto stance. That is, it works in the crypto industry.
Previously, crypto staking activities were legally qualified as collective investment schemes (CIS), which are highly regulated.
Yesterday, the UK Treasury ordered an amendment to the Financial Services and Markets Act 2000, clarifying that staking is not an investment but a cybersecurity activity.
Let’s break down what this means for the UK crypto industry.
Not Investing But A Safe Way
The provision takes effect on January 31, 2025, and clearly states that the stake placement does not fall under the CIS umbrella.
A CIS is any collective arrangement in which participants earn money, such as exchange-traded funds (ETFs).
In staking, users lock their tokens into a pool to make passive returns. However, the Ministry of Finance has denied that the main objective of the deposit is not revenue but network security.
UK crypto owners can now break out the champagne because in order to promote or participate in the CIS, one must obtain approval from the Financial Conduct Authority (FCA). Naturally, this process involves a lot of paperwork, fees, and taxes.
The UK will issue Digital Property Regulations in Q1 2025
By 2024, Tulip Siddiq, the economic secretary at the UK Treasury, said that the framework for digital assets is underway and will include stablecoins, staking, and trading.
The deregulation provision in the Financial Services and Markets Act 2000 may be the first step towards crypto-friendly regulation.
In theory, the new framework should regulate crypto according to its unique characteristics and use cases, which would make investing more accessible and drive adoption.
According to the FCA roadmap, we can expect to see the first version of the regulation in Q1 2025. Later this year, the legislators should complete the regulatory standards for digital goods service providers. This will include consumer protection, financial crime prevention, and risk management.
Meme Index Offers 1,077% APY – And Not Just For UK Investors
The point is that now is the prime time to start researching investment opportunities, especially those with high APYs that can maximize your returns.
One such project is Meme Index ($MEMEX), an early stage meme coin with an APY of 1,077%. Currently trading at $0.0151032, $MEMEX may offer a huge profit to its early adopters after it is listed on a tier-1 exchange.
Meme Index presents four baskets of meme characters with different levels of flexibility:
- Titan: $DOGE, $SHIB, $PEPE, $WIF, BONK, $FLOKI, $BABYDOGE, $BRETT
- Picture of the month: $POPCAT, $PNUT, $MOG, $MEW, $GOAT, $NEIRO, $SPX, $ACT
- MidCap: $TURBO, $BOME, $CHILLGUY, $SNEK, $MEME,$GIGA,$APU,$DOGS
- Madness: $ZEREBRO, $MOODENG, $NPC, $CAT, $POONKE, $FARTCOIN, $DOGE, $DEGEN
This method, the Meme Index borrowed from traditional finance, allows investors to spread the risk and eliminate potential losses.
Essentially, the Meme Index provides safe exposure to the infamous meme stock market and helps investors capitalize on dramatic price swings.
Bright Future Ahead?
The UK government seems to recognize that crypto is here to stay.
Favorable regulations will do more good for the country’s financial industry than stifle innovation and alienate investors.
In the meantime, we remind you to do your due diligence. There is no guarantee that you will get a return on your investment, even if the project has solid foundations because there are many factors at play.
Keep a cool head and invest strategically.