UK FCA seeks feedback on tokenized gold fund rules

The UK Financial Conduct Authority is asking market participants for views on whether some tokenized gold products should be exempt from existing fund rules. The regulator said the review is focused on products backed by physical gold with clear ownership rights and reliable redemption arrangements. According to the FCA, uncertainty over whether these products fall under collective investment scheme or alternative investment fund rules could slow development and limit access for investors and institutions. The consultation, open until Oct. 23, may lead to clearer guidance, targeted exemptions, or a new framework for tokenized gold. The FCA is also working with the Bank of England on broader tokenization in wholesale financial markets, with collateral identified as a key use case. The regulators plan to publish a tokenization roadmap later this year.