FCA Weighs Tokenized Gold Rules Amid London's Bullion Trade Dominance
The Financial Conduct Authority (FCA) is weighing rules for tokenized gold as London defends its position as the global hub for bullion trade. According to a report by the Financial Times, the FCA has been discussing regulation with banks and is expected to announce standards within the next few months.
The regulator does not oversee trading in physical gold but writes rules for gold derivatives and exchange-traded products. The FCA and Prudential Regulation Authority are reviewing whether tokenized gold should count as margin on uncleared over-the-counter derivatives, which would put it alongside cash and government bonds in daily margin calls.
The review is public, and the FCA and Bank of England have invited input from industry stakeholders. The two authorities plan to finalize a roadmap by the end of the year and consult on most rule changes in 2027. This comes as London handles about 70% of global gold trading volume, according to the World Gold Council.