Tokenized Gold May Be Exempt from UK Fund Regulations

According to a report by the UK's Financial Times, the UK Financial Conduct Authority will announce reform proposals on Monday, under which tokenized gold may be exempt from UK fund regulations. The UK Financial Conduct Authority said it is considering establishing, together with the UK Treasury and the Bank of England, a "regulatory regime specifically for tokenized gold, and even more broadly for tokenized commodities." The UK Financial Conduct Authority stated that it may work with the Treasury to "assess and potentially introduce a targeted exemption for certain tokenized gold products or gold market infrastructure, so that they are not constrained by the regulatory boundaries of collective investment schemes and alternative investment funds." The report said that officials from the UK Financial Conduct Authority indicated that no final decision has yet been made. Jon Relling, the authority's head of infrastructure and exchanges, said the regulator wants to clarify whether the existing regulatory framework is still suitable for the gold market.