CF Benchmarks, a company that provides Bitcoin index services to CME Group, licensed by the UK FCA

According to the Bitcoin Exchange Guide report on September 15, CF Benchmarks, a company that provides bitcoin index services to the Chicago Mercantile Exchange, has obtained a cryptocurrency index provider license from the Financial Market Conduct Authority (FCA). This makes CF Benchmarks the first authorized benchmark management company to comply with the European Benchmark Regulations (EU BMR).

Screen Shot 2019-09-15 at 9.59.28 PM (Source: pxhere )

On Friday, the UK Financial Market Conduct Authority granted CF Benchmarks administrator status, which means that once the benchmark regulations become effective in 2020, financial companies can begin using the CF Benchmarks index for any financial products in the European market.

CF Benchmark CEO Sui Chung expressed his gratitude to the Financial Conduct Authority after obtaining the license and said it was a major victory for the EU-based cryptocurrency company. He explained that the use and provision of the index is highly regulated in the EU, so companies using such benchmarks must ensure that their source is a regulated benchmark supplier.

Chung said that the EU's financial enterprise benchmark index is very broadly regulated, and banks and asset management companies use these indices in all aspects. The financial industry now has access to regulated benchmarks that will help strengthen innovation and accelerate the adoption of virtual assets across the EU.

In an interview with Finance Magnets, Chuang said that reliable and credible indices are important for the development of the cryptocurrency market as they help attract more investors, including individual and institutional investors, to enter the market. .

According to CoinDesk's previous reports, with the increasing popularity of the cryptocurrency industry, cryptocurrency indices, especially cryptocurrency indices from traditional financial institutions, are becoming more and more important, while other index providers are likely to gain EU membership in the near future. National recognition.

CF Benchmark, formerly known as Crypto Facilities, is currently the index provider for the Bitcoin reference rate on the Chicago Mercantile Exchange. Earlier this year, the company was acquired at an undisclosed price by Kraken, a large US cryptocurrency exchange.