Altcoins News

Story: UK Crypto Rules Could Push Staking Firms Out of Britain, FCA Critics Warn

By Jean-Luc Maracon

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Staking Economics Under Pressure. The economic viability argument is the loudest one being made.

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Relocation Risk Is Real. The relocation conversation is already happening. Industry participants say companies are running…

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What the FCA Does Next. The FCA's next moves will probably determine whether the UK retains its ambition to be a serious…

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The Financial Conduct Authority's incoming crypto framework is drawing fire. Industry insiders say the proposed rules could make staking services economically unworkable in the…

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The core complaint isn't complicated. Critics argue that the way the FCA has structured its draft framework, certain crypto operations, staking in particular, become too costly…

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The economic viability argument is the loudest one being made. Staking operations run on thin margins at scale.

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And it's not just staking. Businesses offering a range of digital asset services are watching closely, because the regulatory logic applied to staking could easily extend to…

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There's also a competitiveness dimension here that's hard to ignore. Other jurisdictions, including several in Europe and across Asia, have moved to establish frameworks that are…

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The relocation conversation is already happening. Industry participants say companies are running scenarios — if the rules land as currently drafted, where do we go?

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See also: FCA Takes Its Annual Meeting to Edinburgh, Boosting Scottish Workforce Past 350

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The FCA hasn't finalized the framework yet, and that's part of the problem too. Uncertainty is its own kind of cost.

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Some in the industry are calling for a more balanced approach. They want a framework that keeps meaningful consumer protections in place but builds in enough operational…

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The FCA's next moves will probably determine whether the UK retains its ambition to be a serious player in digital assets or quietly cedes that ground to faster-moving markets.

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Stakeholders are watching every signal from the regulator. Any indication that the FCA is willing to revisit the staking provisions specifically would likely calm some of the…

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Related: Kraken Launches Bitcoin Lending Vaults Letting Holders Earn BTC Yield On-Exchange

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