The Financial Conduct Authority (FCA) of the United Kingdom is in discussions with market participants regarding the regulation of tokenized gold, as reported by the Financial Times.
Sources indicate that the regulator has been engaging with industry representatives, including major banks, to gather insights on establishing rules for tokenized gold and fostering the growth of this segment.
Simultaneously, the FCA is collecting feedback on how this instrument could function as collateral in wholesale markets.
One source mentioned that the agency might announce the development of regulatory standards in the coming months.
The Financial Times links these discussions to the UK's initiative to digitize wholesale financial markets and the ongoing competition for dominance in gold trading.
According to the publication, London remains the largest trading hub but is facing competition from China, as well as exchanges in Shanghai and Hong Kong. One source from FT warned that without market modernization, including tokenization, competitors could seize the lead.
Additionally, sources pointed out the oversight issue. While the FCA does not regulate the trading of physical gold, it does set rules for gold derivatives and exchange-traded products.
It is worth noting that in June, the British regulator set a timeline for cryptocurrency companies to apply for authorization, extending from September 30, 2026, to February 28, 2027.