FCA Weighs Easing Rules for UK Tokenized Gold
The Financial Conduct Authority (FCA) in the UK is considering a move to make it easier for people to buy tokenized gold, which could unlock more of London's bullion reserves for use as collateral.
This comes after industry participants told the FCA that uncertainty over whether tokenized gold falls within the UK's collective investment scheme (CIS) or alternative investment fund (AIF) rules hinders its development. The regulator is weighing a targeted exemption from these restrictions, which would cover certain gold tokens or market infrastructure.
The World Gold Council puts London's share of global gold trading volumes near 70%, and the FCA believes that making it easier to buy tokenized gold could help the UK compete with rival bullion hubs like China. The regulator is also considering adding tokenized assets, including stablecoins, to its Sterling Monetary Framework.