UK FCA weighs regulatory exemption for tokenized gold products

The UK Financial Conduct Authority has considered exempting certain tokenized gold products from existing fund rules as regulators examine how digital bullion could be used more easily across London’s wholesale financial markets. Summary The FCA is considering whether certain tokenized gold products should be exempt from UK collective investment scheme and alternative investment fund rules. The regulator is examining a dedicated framework for tokenized gold with the Treasury and Bank of England, though no decision has been made. UK regulators are studying whether tokenized bullion could make physical gold easier to divide, transfer and use as collateral in financial markets. The Bank of England is considering whether tokenized assets, including stablecoins, could qualify as collateral under its Sterling Monetary Framework. The Financial Conduct Authority will set out the potential changes on Monday as part of work with the Treasury and Bank of England on whether tokenized gold, or tokenized commodities more generally, need a dedicated regulatory framework. One option under consideration is a targeted exemption from rules covering collective investment schemes and alternative invest...