The UK's FCA proposal allows retail investment funds to hold up to 10% in cryptocurrency
The UK Financial Conduct Authority proposed in its quarterly consultation document to allow certain approved investment funds (including UCITS funds and some non-UCITS funds) to hold up to 10% of 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 is 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 UK Financial Conduct Authority is publicly consulting on whether non-regulated and qualified investor schemes can invest in more speculative assets without a holding limit; this public consultation will last for five weeks until July 13.
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