FCA weighs exempting tokenized gold from fund rules

The UK's Financial Conduct Authority is exploring a bespoke regulatory framework with the Treasury to carve out tokenized gold from traditional fund laws, according to the Financial Times. The move is aimed at defending London's gold market as bullion moves on-chain.

The discussions sit alongside a wider UK push to formalize digital assets, including the House of Lords passing a national digital asset strategy requirement and a planned Bank of England stablecoin objective. A lighter-touch treatment could make it cheaper and easier to issue and trade tokenized metal in the UK.