CF Benchmarks finals get a green flag for a license from the Financial Conduct Authority to carry on its operations under the European Benchmarks Regulation’sBenchmark Administrator.
The announcement came out on Friday, making the company become first in its domain to have a cryptocurrency benchmark to be controlled by financial regulators in the UK.
This implies that the finance firm can employ CF Benchmarks for any of the products from European finance once the BMR from EU is completely functional on January 1, 2020. This will involve everything from issuing, trading as well as investing in product referencing indices, employing indices for portfolio asset allocation, performance metrics for funds, and determining rates of borrowing along with the settlement mechanisms.
Stating his views on the achievement, Sui Chung, chief executive of the company, spoke in an interview:
“We are proud to be the first regulated cryptocurrency index provider to meet the EU BMR’s stringent requirements. The industry can now gain access to regulated, high integrity benchmarks, which will spur innovation, furthering the adoption of digital assets in Europe and beyond.”
Also acknowledged by the name Crypto Facilities, the firm is also the provider of the index for the Reference rate of CME CF Bitcoin. The firm earlier was bought by a crypto exchange based in the US, the Kraken in a 9 figure deal. The exact amount is unknown.
“Reliable and trusted benchmarks are critical to growing the cryptocurrency ecosystem as they attract more individual and institutional investors to the asset class,” Chung added.
With crypto investments getting momentum in recent years, keen attention has also been paid to crypto indices by the major financial institutions.
Nasdaq also added a crypto market index recently that is created by Exante to foresee the future scope of certain blockchain firms that operate in the decentralized finance field. This, along with being listed on platforms likeTradingView and Google. Projects like MakerDAO, Augur, 0x, and Amoveo is listed in the index.
In the month of June, Crypto Compare collaborated with Nasdaq, releasing a product on crypto pricing. Not long ahead, the provider of crypto data released an index to rank crypto exchanges.
The BMR will affect banks, exchanges, brokerages, asset owners, and financial product issuers operating in Europe.
CF evaluates the CME for CF pricing of Cryptocurrency Products, along with the CF Cryptocurrency Family of Index benchmarking administers. CF Benchmarks apply to the indexing methods and mechanisms for the unique products in cryptocurrency class asset. This mechanism creates a strong framework along with safeguards for anti-manipulation to make sure the quality, reliability, and integrity of its index.