UK regulator eyes tokenized gold framework in digitization push

Homepage > News > Finance > UK regulator eyes tokenized gold framework in digitization push The United Kingdom’s top finance sector watchdog, the Financial Conduct Authority (FCA), has begun preparing regulatory standards for tokenized gold, as part of a broader digitization push aimed at maintaining London’s position as one of the world’s leading financial markets, according to a report from the Financial Times. Citing “people familiar with the watchdog’s plans,” the report said the FCA has been in discussions with industry participants, including banks, about how best to regulate tokenized gold to encourage growth in the U.K. market. The talks, which are reportedly still in their early stages, are part of a wider effort by the U.K. to digitize wholesale financial markets and come as London’s dominance of the gold market is being challenged by the United States and, in particular, by China. The London market has historically been the center of the gold trade and currently accounts for approximately 70% of global notional trading volume, according to the World Gold Council. The tokenized gold market cap, meanwhile, sits at around $4 billion, the majority of which can be at...