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

Odaily Planet Daily News The UK Financial Conduct Authority has proposed in its quarterly consultation paper to allow certain authorized investment funds (including UCITS funds and some non-UCITS funds) to hold up to 10% of their assets in cryptocurrency exchange-traded notes. The proposal aims to align authorized 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 is inappropriate for retail-focused funds to take on significant risk exposure to crypto products, and the 10% cap sets a conservative limit. In addition, the FCA is seeking public opinion on whether unregulated and qualified investor schemes can invest in more speculative assets without holding limits. The public consultation will last for five weeks until July 13. (Cointelegraph)