U.K. regulator FCA granted CF Benchmarks a Crypto Index Provider license and recognized it as a Benchmark Administrator under the European Benchmarks Regulation (EU BMR).
That makes CF Benchmarks, the provider of the CME CF Bitcoin Reference Rate and a subsidiary of Kraken, the first cryptocurrency index provider to be regulated in the EU. FCA confirmed that financial institutions can use the CF Benchmarks indices for any European financial products after the act comes into full force on Jan. 1, 2020.
CF Benchmarks tweets about becoming the first crypto index provider authorised by the FCA.
According to CEO of CF Benchmarks Sui Chung, “reliable and trusted benchmarks are critical to growing the cryptocurrency ecosystem as they attract more individual and institutional investors to the asset class.”
Chung went on to say:
"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.”
The company’s press release posits that once the EU BMR regulations come into full force, financial services firms, such as EU and UK banks, brokerages and exchanges could start creating regulated financial products referencing the CF Benchmarks cryptocurrency indices:
“This includes issuing, trading and investing in products referencing indices; and using indices to define the asset allocation of a portfolio, measure fund performance and determine borrowing rates and contract settlement mechanisms.”