The UK FCA proposal allows retail investors to hold a maximum of 10% of crypto shares in investment funds.

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Mars Finance News: The UK Financial Conduct Authority (FCA) has proposed in its quarterly consultation document that certain approved investment funds (including UCITS funds and some non-UCITS funds) be allowed to hold up to 10% of their shares in cryptocurrency exchange-traded notes. The proposal aims to align approved funds with investor demand while ensuring adequate consumer protection. The FCA 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 will serve as a conservative limit. Additionally, the FCA is seeking public comment on whether non-regulated and qualified investor schemes can invest in more speculative assets without holding limits. This public consultation will last five weeks until July 13.
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