The FCA plans to propose a regulatory carve-out for tokenized gold, potentially unlocking billions in bullion reserves for use as digital collateral in financial markets.
The UK Financial Conduct Authority is considering exempting tokenized gold from restrictive fund regulations to modernize London's bullion market. By removing these assets from collective investment scheme rules, the regulator aims to streamline the use of digital gold as collateral and maintain London's competitive edge against emerging global bullion hubs.
Current fund rules, specifically collective investment scheme (CIS) regulations, restrict who can purchase these assets. An exemption would simplify the transfer and use of gold tokens, potentially allowing them to be used as collateral in the Sterling Monetary Framework.