UK FCA considers bespoke rules and fund exemptions for tokenized gold: FT
Unnamed industry participants reportedly warned that UK fund rule uncertainty could slow tokenized gold development and limit investor access.
Asanat Analysis — Why it matters
The FCA's consideration of bespoke tokenization rules signals regulatory maturity around asset-backed tokens, moving beyond blanket restrictions toward tailored frameworks. Tokenized gold specifically addresses a concrete use case—fractional ownership of physical commodities with blockchain settlement—rather than speculative tokens. Regulatory clarity here could unlock institutional capital flows into on-chain precious metals, a sector that has struggled with legal ambiguity around custody, redemption, and fund classification.
The reported industry warnings about fund rule uncertainty point to a structural friction: existing UK fund regulations (UCITS, AIFMD) were designed for traditional custodians and venues, not smart contract-based infrastructure or decentralized settlement. Fund exemptions would signal the FCA is willing to create carve-outs for tokenized assets that don't fit legacy frameworks. This precedent matters beyond gold—it establishes whether regulators will adapt rules for tokenization or force tokens into ill-fitting boxes. Competitor jurisdictions (Singapore, Switzerland) have already moved faster on commodity token frameworks, so UK clarity could prevent regulatory arbitrage.