UK regulator weighs new rules for tokenised gold

• The FCA has opened a review of rules covering tokenised gold in UK markets.
• The regulator is considering a bespoke regime that could sit outside existing fund rules.
• The review aims to support gold trading while keeping London competitive.

The UK Financial Conduct Authority has opened a review of tokenised gold and its role in wholesale markets.

The FCA wants to know whether digital gold can make trading, transfers and collateral use easier.

Jon Relleen, FCA director of infrastructure and exchanges, said tokenised gold “has emerged as an area of interest”.

The regulator is examining whether existing rules for collective investment schemes and funds are suitable for tokenised gold.

It is also assessing whether digital gold could improve market efficiency and support new financial products.

The FCA has opened the review as London seeks to maintain its position as a major global gold trading centre.

The regulator will accept responses until October 23 and may later issue guidance or create a bespoke regime.