Paragraph 7C Qualifying cryptoasset stakingF1

Making arrangements on behalf of another person (whether as principal or agent) for qualifying cryptoasset staking is a controlled activity.

There is excluded from sub-paragraph (1) the provision of services solely for the purpose of introducing a person to an authorised person with a Part 4A permission to carry on the regulated activity specified by article 9Z6.

A person does not carry on the activity specified by sub-paragraph (1) merely by providing means by which one party to an arrangement, or potential arrangement, is able to communicate with other such parties.

There is excluded from sub-paragraph (1) a technical service provided by a person (“P”) where—

In this paragraph—

• “blockchain validation” means the validation of transactions on—

  1. (a)

     a blockchain, or

  2. (b)

     a network that uses distributed ledger technology or other similar technology,

  and includes proof of stake distributed ledger technology consensus mechanisms;

• “qualifying cryptoasset staking” means the use of a qualifying cryptoasset in blockchain validation.