Grab EXTRA 10% OFF all Tangem products. Till Oct 25UK considers bespoke rules for tokenized gold
7 Regulation UK regulators may create special rules for tokenized gold, aiming to boost market efficiency and keep London at the forefront of global gold trading.
UK regulators are exploring the creation of a dedicated regulatory framework for tokenized gold. This could mean certain tokenized gold products would be exempt from existing collective investment scheme and alternative investment fund rules. The Financial Conduct Authority, working with the Treasury and the Bank of England, is considering whether digital tokens backed by physical gold should have their own set of regulations. The goal is to make gold easier to divide, transfer, and use as collateral in financial markets. Additionally, the Bank of England is reviewing whether tokenized assets could be accepted as collateral under its Sterling Monetary Framework. Industry participants have expressed concerns that regulatory uncertainty is slowing the development of tokenized gold, as current rules limit who can invest. London, which accounts for about 70% of global wholesale gold trading, is facing growing competition from China. The FCA is preparing to outline its proposals, which could strengthen London’s position in bullion trading and custody, while clarifying the regulatory status of tokenized gold and similar commodities.
