UK Looks to Turn London’s Gold Dominance Into a Tokenization Edge

• The FCA is considering bespoke regulatory treatment for tokenized gold.
• London already handles roughly 70% of global gold trading.
• Digital ownership could make bullion easier to divide and transfer.
• Britain’s larger goal is connecting existing assets to tokenized finance.

Britain wants to bring one of London’s oldest markets into its emerging digital financial infrastructure. The Financial Conduct Authority is exploring bespoke rules for tokenized gold, including whether certain structures should be exempt from existing fund regulation, as policymakers look for ways to make the UK’s vast bullion market easier to use across digital markets.

The FCA Is Rethinking How Digital Gold Should Be Regulated

At the center of the consultation is a deceptively important question: when gold is represented by a digital token, should that token automatically be regulated like an investment fund?

The FCA is examining a dedicated regime that could exempt qualifying tokenized gold products from rules governing collective investment schemes and alternative investment funds, according to the Financial Times. The work is being considered alongside HM Treasury and the Bank of England, and no final regulatory model has been selected.

… Continue reading the full article at the original source below.