FCA Weighs Tokenized Gold Exemption to Shield London Market

The Financial Conduct Authority (FCA) is considering exempting tokenized gold from traditional fund laws to protect London's market. The move aims to provide a bespoke regulatory framework with the Treasury to carve out digital gold from existing rules.

This development follows the growth of tokenized assets, which are increasingly being used by investors to buy and hold digital versions of physical commodities such as gold.

The FCA is exploring this option in collaboration with the Treasury to safeguard London's position as a major financial hub and prevent its market share from eroding. Tokenized gold could be treated under a separate regulatory framework, distinct from traditional funds.