Ronald Leung’s original, dated commentary is reproduced below. Views, invitations and product references reflect the time of publication; they are not investment advice, an offer, a guarantee of return or confirmation of current availability.
A market with 70% share does not usually name its rivals out loud.
Last week the FT reported the UK's FCA is preparing a framework for tokenised gold. One stated aim: protect London's dominance in bullion trading.
London handles about 70% of global volume (World Gold Council). Someone close to the work told the FT there is "huge competitive pressure from Shanghai and Hong Kong."
Defending a lead is rational. That is not the interesting part.
The FCA does not regulate physical gold trading. So London is still working out which regime tokenised gold sits in at all. Hong Kong answered that in statute. Cap. 615, s.53ZU(1)(c) — Customs, not the SFC, unless the product is structured as a security. London's 70% took a century. But that doesn't mean there's no way to catch up, given the right direction and right strategy.
Disclosure: Esperanza operates a tokenised gold business. — Let's open the statute. A new breakdown every week.