The FCA of the UK is working on regulations for tokenized gold, engaging with banks to promote growth in this sector.
The UK's Financial Conduct Authority (FCA) is actively engaging with industry stakeholders to formulate regulations for tokenized gold, according to reports from the Financial Times.
Discussions have involved key players, including major banks, aimed at establishing a regulatory framework that would promote the growth of tokenized gold as a financial instrument.
In addition to regulatory considerations, the FCA is seeking input on the potential use of tokenized gold as collateral in wholesale markets.
Reports suggest that the FCA may reveal its plans for regulatory standards within the next few months, aligning with the UK’s broader goal of modernizing its wholesale financial markets.
London currently leads as the primary gold trading hub, but faces increasing competition from markets in China, particularly from exchanges in Shanghai and Hong Kong. Experts warn that without embracing modernization efforts like tokenization, the UK risks losing its competitive edge.
While the FCA does not oversee the trading of physical gold, it regulates gold derivatives and exchange-traded products. In a related note, the FCA recently updated its timeline for cryptocurrency firms to seek authorization, extending the deadline from September 30, 2026, to February 28, 2027.
