The UK's Financial Conduct Authority (FCA) is discussing with market participants an approach to regulating tokenised gold. This is reported by the Financial Times citing sources.
According to sources of the publication, the regulator has communicated with industry representatives, including major banks. The FCA has been consulting on the creation of rules for tokenised gold and supporting the growth of the segment.
Simultaneously, the Authority is gathering feedback on how the instrument could function as collateral on wholesale markets.
One source noted that the authority may announce the development of regulatory standards in the coming months.
The Financial Times links these discussions to the UK's wholesale financial market digitalisation programme and the competition for leadership in gold trading.
According to the publication, London remains the largest trading centre but faces pressure from China, as well as platforms in Shanghai and Hong Kong. One FT source stated that without modernising the market, including tokenisation, leadership could be seized by competitors.
Sources also pointed to the question of oversight. The FCA does not regulate the trading of physical gold but sets rules for gold derivatives and exchange-traded products.
Recall that in June, the British regulator set the application period for authorising crypto companies — from 30 September 2026 to 28 February 2027.
