U.K. Regulator Proposes Allowing Retail Funds to Hold Up to 10% in Crypto Notes

The U.K.'s Financial Conduct Authority proposed permitting certain retail investment funds to allocate up to 10% of assets to cryptocurrency exchange-traded notes. These funds are already available to retail investors in the U.K.

Background on the Proposal Current rules limit retail funds from holding crypto assets directly. The new measure would allow indirect exposure through listed exchange-traded notes. The Financial Conduct Authority said the change would give retail investors regulated access to cryptocurrency markets while maintaining existing investor protections.

The proposal remains open for public consultation before any final rules are adopted.