UK FCA Proposes Allowing Retail Investment Funds to Hold Up to 10% in Crypto Exposure

Odaily Planet Daily News: The UK Financial Conduct Authority has proposed in its quarterly consultation paper allowing certain approved investment funds (including UCITS funds and some non-UCITS funds) to hold up to 10% in cryptocurrency exchange-traded notes. This proposal aims to align approved funds with investor demand while ensuring adequate consumer protection.

The UK Financial Conduct Authority stated that given the speculative nature of the underlying crypto assets, it would be inappropriate to allow retail-focused funds to have significant risk exposure to crypto products, and the 10% cap will set a conservative limit. Additionally, the FCA is seeking public views on whether unregulated and qualified investor schemes can invest in more speculative assets without holding limits. This public consultation will last for five weeks until July 13. (Cointelegraph)