Staking will not be considered a collective investment scheme in the United Kingdom, according to a recent amendment by the U.K. Treasury.

U.K. Authorities have updated a section of the Financial Services and Markets Act 2000, which regulates financial markets in the U.K., to clarify that crypto staking is not a “collective investment scheme.”

Staking is a process where blockchain users lock up a network’s native tokens for a chance to participate in transaction validation on proof-of-stake blockchain networks like Ethereum. In return, participants earn rewards, usually in the form of additional tokens.

The Treasury’s amendment clarifies that staking does not fit the definition of a collective investment scheme. A CIS involves arrangements where individuals pool their funds for shared …