In February, the UK’s Financial Conduct Authority (FCA) published a discussion paper on improving asset management in the UK, dedicating a section to tokenization. It’s keen to assess whether the tokenization of fund units is a high priority and whether they should consider amending regulations. Responses are requested by May 22.
The FCA paper explored three aspects of tokenization: tokenizing the fund’s units, a fund investing in tokenized securities, and whether or not funds can invest in crypto-assets.
On the latter point, crypto-assets are currently not permitted assets that an authorized fund can hold. The FCA noted that the government is conducting a crypto-asset consultation, and hence the FCA is not currently planning to consider the topic.
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