FCA Considers Exemption for Tokenized Gold Products
The Financial Conduct Authority (FCA) is considering a key exemption for tokenized gold products in the UK, which could reshape access to the market. The review aims to determine whether existing fund rules apply to digital bullion products that have underlying physical assets.
Industry participants argue that uncertainty over classification can restrict access to some products and discourage development before launch. The FCA is examining whether existing frameworks remain suitable for tokenized gold, which is a virtual claim on physical gold stored by custodians or issuers.
The review involves discussions with the Treasury and Bank of England to explore possible exemptions from collective investment scheme and alternative investment fund rules. London remains one of the largest centers for international gold transactions and custody, accounting for around 70% of global trade volume.