UK FCA Weighs Exempting Tokenized Gold From Fund Rules

The U.K.'s Financial Conduct Authority is considering removing tokenized gold from existing fund regulations. If it is excluded, tokenized gold could instead be placed under a separate regulatory framework.

The Financial Times reported on September 14 that the FCA plans to announce reform proposals that would allow tokenized gold to be excluded from the U.K.'s fund rules.

The FCA, together with the U.K. Treasury and the Bank of England, is also considering a separate regulatory framework tailored to tokenized gold and other tokenized commodities.

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

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