Bitstamp now offers its UK staking services for Ethereum (ETH) and Cardano (ADA) through its new Bitstamp Earn Staking service.

UK Clarity Triggers Market Action

According to the announcement, UK customers can stake ETH directly via their Bitstamp accounts. Staking will be enabled automatically for those who deposit ADA, though users can opt out if they choose.

Bitstamp’s staking model mirrors the Proof-of-Stake (PoS) mechanism, where users delegate tokens to network validators and earn rewards in return. Returns stand at up to 3.10% APY for Ethereum and 1% for Cardano.

The UK Treasury’s move in January 2025 removed longstanding legal uncertainty about staking. By excluding it from CIS regulations, officials effectively gave exchanges the approval to offer staking without jumping through the challenges tied to traditional fund management.

Bitstamp plans to distribute rewards weekly or monthly, depending on the token. Importantly, Bitstamp itself imposes no lock-up periods, although staking networks may set their own terms and fees.

UK’s Regulatory Changes

This launch marks the first notable move by a major exchange to expand UK-based staking services in response to regulatory changes. It also reflects growing demand among retail and institutional clients for lower-risk ways to engage with digital assets.

Early this year, the UK Treasury amended its regulations by separating blockchain validation activities, such as cryptocurrency staking, from collective investment schemes, providing clearer regulatory guidance for the crypto industry.

The amendment allowed UK crypto users to participate in network validation without the stricter oversight applied to investment schemes. It clarified the definitions for “qualifying crypto assets,” reducing previous uncertainties that caused staking to be misclassified alongside pooled investments.

Last year, Robinhood Markets announced its agreement to buy Bitstamp. Founded in 2011, Bitstamp operates offices in Luxembourg, the UK, Slovenia, Singapore, and the US. The final deal consideration is expected to be almost $200 million in cash.

Source: Finance Magnates