According to the *Financial Times*, the UK Financial Conduct Authority (FCA) stated that it is working with the Treasury and the Bank of England to explore establishing a dedicated regulatory framework for tokenized gold or broader tokenized commodities. They are also evaluating exemptions for certain tokenized gold products or market infrastructures from the regulatory scope of Collective Investment Schemes (CIS) and Alternative Investment Funds (AIF). The FCA noted that no decisions have been made yet. Tokenized gold represents ownership of physical gold through digital assets, with issuers holding gold bars as backing assets. This could potentially unlock more of London’s gold reserves to be used as collateral in financial transactions. Currently, the UK accounts for about 70% of global gold trading volume. The Bank of England is also considering including tokenized assets, such as stablecoins, within the eligible collateral framework for the pound sterling and plans to consult later this year on allowing central counterparties (CCPs) to accept tokenized assets as collateral. https://(wublock123.com)/news/uk-fca-proposes-regulatory-exemption-for-tokenized-gold-68340