Risk, Assurance & Compliance Toolkit for Metal-Backed Tokens

Introduction: Why Metal-Backed Tokens Demand a Special Compliance Framework

Executive Summary: Metal-backed tokens – especially gold-backed cryptocurrencies – are surging in popularity as investors seek the stability of physical assets combined with blockchain’s e{ciency. Unlike generic cryptocurrencies, these tokens straddle two worlds: the tangible commodity markets and the digital asset realm.

This dual nature means Dubai gold-backed crypto regulation and global rules must address both traditional commodity laws and cutting-edge crypto frameworks. For example, the UAE’s Securities and Commodities Authority (SCA) recently proposed a comprehensive regime for security and commodity tokens, recognizing them as rights recorded on a blockchain that represent real assets like gold. In parallel, Dubai’s new Virtual Assets Regulatory Authority (VARA) has been empowered to oversee these tokens, issuing rules (e.g. marketing guidelines) to solidify the UAE’s position as a leading crypto hub.

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Risk, Assurance & Compliance Toolkit for Metal-Backed Tokens (PDF)