UK Regulators Weigh Exemption for Tokenized Gold

The UK's Financial Conduct Authority is exploring a bespoke regulatory framework for tokenized gold, potentially exempting certain digital bullion products from existing fund rules to bolster London's position in the global bullion market. The regulator will set out its proposals on Monday, according to multiple reports. The FCA is weighing whether to create a targeted exemption from the UK's collective investment scheme and alternative investment fund rules for specific tokenized gold products or related market infrastructure. Industry participants have told the regulator that uncertainty over whether such digital assets fall under these frameworks could hinder their development, as both regimes restrict who can invest. The move is part of a broader UK effort to support the tokenization of wholesale financial markets. The FCA will present its ideas alongside the Treasury and the Bank of England. Officials have emphasized that no final decisions have been made. Tokenized gold uses blockchain-based tokens to represent ownership of physical bullion held in a vault.