Tokenised gold could be exempt from fund regulations under FCA proposal - Financial Times

The Financial Times reports that the UK's Financial Conduct Authority has proposed treating tokenised gold as exempt from certain fund regulations. Tokenised gold refers to digital tokens backed by physical bullion, allowing investors to hold and transfer claims on gold on a blockchain rather than through a traditional fund structure.

The proposal matters because regulatory classification shapes how products are built, sold, and supervised. If tokenised gold sits outside fund rules, issuers could potentially bring such products to market under a lighter framework than collective investment schemes, which carry requirements around custody, disclosure, and investor protection. That could lower barriers for firms exploring blockchain-based commodities, though the FCA's exact scope and any conditions remain to be confirmed.

For markets, the key question is whether this signals a broader UK approach to tokenised real-world assets. Watch how the consultation develops, how custody of the underlying bullion is handled, and whether other jurisdictions respond similarly. Any change would affect the competitive balance between traditional gold funds and tokenised alternatives.