Risk, Assurance & Compliance Toolkit for Metal-Backed Tokens
This page was published on 4 May 2025 and is retained for reference. It has not been reviewed since publication, and the frameworks it describes may since have changed. For the firm's current reading of this area, see the positions on the record.
Risk, Assurance & Compliance Toolkit for Metal-Backed Tokens
Published: May 4, 2025Introduction: 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 efficiency. 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)