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UK FCA Weighs Regulatory Exemption for Tokenized Gold Products
Regulators are weighing a targeted exemption as tokenized gold already has a $4.4 billion market and is being used as collateral.
- The Financial Conduct Authority will present proposals on Monday examining whether tokenized gold products require exemptions from existing CIS and AIF fund rules.
- Industry participants warned the Financial Conduct Authority that regulatory uncertainty over CIS and AIF frameworks could limit investor access to tokenized gold products.
- London remains the dominant over-the-counter gold market, accounting for about 70% of global notional trading volume per the World Gold Council, with Tether Gold and Pax Gold reaching roughly $4.4 billion combined market capitalization in July.
- Aave's $25 million debt ceiling for borrowing against Tether Gold was fully used by late August, while Arch Lending accepts PAXG and XAUT for loans at loan-to-value ratios of up to 75%.
- The Bank of England plans to consult later this year on whether central counterparty clearing houses should accept tokenized assets as collateral, extending UK tokenization work beyond gold to wholesale market infrastructure.
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Cryptocurrency News | Cryptocurrency Prices | Market CapUK FCA weighs regulatory exemption for tokenized gold products
The UK Financial Conduct Authority has considered exempting certain tokenized gold products from existing fund rules as regulators examine how digital bullion could be used more easily across London’s wholesale financial markets. The Financial Conduct Authority will set out the…
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