Finance14 September, 20262 min read
UK FCA Prepares Bespoke Rules for Tokenised Gold With Treasury and Bank of England
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FCA weighing bespoke regulatory framework and fund-rule exemptions for tokenised gold. Regulators aim to boost tokenised gold adoption in London wholesale markets.
8 outlets told this the same way.
FCA weighs bespoke gold rules
The UK Financial Conduct Authority is preparing to explore a bespoke regulatory framework for tokenised gold, and possibly other tokenised commodities, as it considers whether digital tokens backed by physical bullion deserve their own rulebook rather than being squeezed into existing fund regulations. The Cryptonomist says the FCA is preparing to set out proposals alongside the Treasury and the Bank of England that could give tokenised gold its own tailored set of rules rather than treating it as an extension of existing fund products.
The Crypto Times adds that the FCA plans to explore, alongside the UK Treasury and Bank of England, whether tokenized gold should fall under a separate regime rather than existing collective investment scheme (CIS) and alternative investment fund (AIF) rules. The Crypto Times frames the aim as making London’s bullion market more efficient and competitive, while also examining tokenized gold’s potential as collateral in financial transactions.
Collateral and investor access
Cointelegraph reports that the FCA is seeking feedback on whether some tokenized gold products should be exempt from fund rules, saying the review focuses on tokenized products that represent ownership of physical gold and have transparent backing, clearly defined ownership rights and reliable redemption arrangements.
Cointelegraph also says the consultation is open until Oct. 23 and could determine whether clearer guidance, targeted exemptions or a bespoke regime is needed for tokenized gold, after the FCA said uncertainty around UK fund rules may affect the development of some use cases.
In a separate call for input and feedback statement, Cointelegraph says the FCA and the Bank of England received 123 responses to a May call for input and that collateral was the most frequently mentioned use case.
The Crypto Times similarly warns that industry participants have cautioned that uncertainty over whether tokenized gold structures could fall under existing CIS or AIF rules could restrict access for certain investors.
London’s role and next steps
The Cryptonomist says figures from the World Gold Council indicate that around 70% of worldwide wholesale gold trading volumes pass through the UK, positioning London as the foremost global hub for bullion trading and custody services. The Crypto Times adds that the UK accounts for about 70% of global gold trading volumes, while China is working to erode that position, and it says the FCA is examining whether existing regulatory frameworks "remain the right fit for gold markets" as tokenization changes how assets are traded and settled.
The Cryptonomist says one option on the table is a targeted exemption for certain tokenised gold products from the collective investment scheme and alternative investment fund regimes, while officials stress no decision has been made yet. Cointelegraph reports that the FCA and BoE said they will publish a tokenization roadmap later this year with details and target dates for each workstream, and it notes that collateral was the most frequently mentioned use case in the feedback.