CF Benchmarks, the firm that provides an index to the widely known CME Group, has gotten the necessary approval from the Financial Conduct Authority (FCA) to become a Benchmark Administrator, showing full compliance with the European Benchmarks Regulation, or EU BMR.
The development means that every financial service company that wants to implement CF Benchmarks in products all around the continent can do it once the measure begins to be in full effect, on January 1, 2020.
A Safe Ecosystem
CF Benchmarks, therefore, is now the first cryptocurrency benchmark provider of its kind to fully comply with the United Kingdom’s Financial Conduct Authority, providing a safe ecosystem for people or entities that may need it.
Via its official Twitter account @CFBenchmarks, the company announced the news, saying that it is, indeed, the first crypto index provider to obtain the respective EU BMR green light from the FCA.
— CF Benchmarks (@CFBenchmarks) September 13, 2019
The CEO of the firm, Sui Chung, expressed his happiness at the moment of the announcement of the news. He said that CF Benchmarks is proud to have the honor of being the first regulated crypto index providing service to show that it has all the requirements to give peace of mind to both the FCA and the EU BMR.
He also observed that the industry will now be able to enjoy fully-regulated benchmarks known for their integrity. They hold the potential to promote creativity, innovation, and ultimately, the mass adoption of cryptocurrencies in the continent and on the whole planet.
CF Benchmarks was known in the past as Crypto Facilities. The firm also provides indices to CME CF Reference Rate, and it was bought by Kraken, the famous American cryptocurrency exchange and trading platform, in a deal worth at least $100,000,000 in the first weeks of 2019.
Promoting the Growth of the Crypto Industry
According to Chung, the importance of having reliable and trustworthy benchmarks available is often overlooked, as they are crucial to promote the growth of the crypto industry because it helps entice both individual and institutional investors.
Investing in crypto assets is becoming a widespread activity, and with its popularity rising, crypto indices are also benefiting from the extra attention they get.
Financial house Nasdaq has included a product created by Exante. It is a crypto market index that has the intention of forecasting the growth of a specific group of blockchain firms that currently work in the decentralized finance, or DeFi, industry. Some of the projects included in the index are MakerDAO, Amoveo, Augur, and others.