UK financial regulator expresses support for industry's asset tokenization report

A group of industry experts released a report on implementing tokenization of funds on Friday, which has been welcomed by UK regulators. The technical working group, set up by the Chancellor’s Task Force on Asset Management, recommended that firms ensure authorization from UK regulators when launching tokenized funds and hold traditional assets while maintaining interoperability with future technologies. Tokenized funds have become a hot topic in the European financial field recently by providing tokenized shares that represent investors’ rights and interests, and conducting transactions and records on distributed ledger technology. The Financial Conduct Authority expressed support for the working group, saying this was an exciting milestone that paves the way for the exploration of more transformative use cases in the future. The working group will explore how to further develop the fund tokenization model by the end of the year and will work with regulators within a year to consider the impact on regulations. At the same time, the working group called on the government to consider further action against some tokenized service providers who lack access to banking services. (CoinDesk)