The United Kingdom’s (U.K.) financial markets regulator is proposing to allow certain investment funds to hold up to 10% of their assets in cryptocurrencies.

The U.K. Financial Conduct Authority’s proposal covers the British version of mutual funds, i.e. open-ended investment funds that pool capital from retail investors into managed portfolios.

The regulator said that capping exposure to cryptocurrencies such as Bitcoin (CRYPTO: $BTC) at 10% will help mitigate the risks of significant impacts arising from exposure to digital assets.

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