UK Eyes Tokenized Gold Rule Exemption as London Pushes Deeper Into Digital Markets

UK regulators are also examining whether tokenized gold products can be exempted from existing fund regulations, as the authorities consider how blockchain-based bullion can be adopted in London wholesale financial markets.

The Financial Conduct Authority is expected to set out potential changes to the treatment of tokenized commodities in conjunction with the Treasury and Bank of England.

The proposal is to exclude some digital gold products from the rules which apply to collective investment schemes and alternative investment funds. No decisions have been taken.

Industry participants have cautioned that uncertainty regarding these classifications may inhibit the adoption of tokenized bullion and investor access.