UK FCA Weighs Exempting Tokenized Gold From Fund Rules

The UK’s Financial Conduct Authority is considering removing tokenized gold from the scope of existing fund regulations. If it does, a separate regulatory framework for tokenized gold would likely be created.

The Financial Times reported on September 14 that the FCA plans to announce reform proposals that would allow tokenized gold to be excluded from UK fund regulations.

The FCA is also considering, together with the UK Treasury and the Bank of England, whether to establish a separate regulatory regime for tokenized gold and other tokenized commodities.

The regulator said it could discuss with the Treasury a separate exemption that would keep some tokenized gold products and parts of the gold-market infrastructure from being subject to rules governing collective investment schemes and alternative investment funds.

John Lellin, the FCA’s head of infrastructure and exchanges, said the review is intended to assess whether the current regulatory framework remains appropriate for the gold market.