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

Odaily Planet Daily News: The UK Financial Conduct Authority has proposed in its quarterly consultation paper to allow certain authorised investment funds (including UCITS funds and some non-UCITS funds) to hold up to a 10% share of cryptocurrency exchange-traded notes. This proposal aims to align authorised funds with investor demand while ensuring consumers are adequately protected.

The UK Financial Conduct Authority stated that, given the speculative nature of the underlying crypto assets, it is not appropriate for retail-focused funds to have significant risk exposure to crypto products, and the 10% cap will set a conservative limit. In addition, the FCA is publicly consulting 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)