Prime Factor Capital Ltd., a London-based hedge fund manager is the first financial company focused on the crypto market to be granted a license by the British Financial Conduct Authority (FCA).
The company announced in a statement earlier this week, that it was given approval and will be regulated as a full scope alternative investment fund manager under the FCA and the broader EU guidelines.
According to a company statement that will give them permission to manage over 100 million euros (113 million USD) in crypto assets, as well as to attract institutional investors.
Until now the rapidly developing crypto currency market, which recently has bubbled to some 300 billion USD, remained largely unregulated.
“Most vehicles for investing in cryptocurrencies are outside the scope of regulators and that’s a big problem in a market that has such a bad reputation,” said Adam Grimsley, chief operating officer of Prime Factor Capital, quoted by Bloomberg.
Grimsley is a former BlackRock fixed income investor, who established Prime Factor Capital in 2017 together with Michael Wong, who also worked at BlackRock and Nic Niedermowwe – an energy derivatives trader from RWE AG.
Now Prime Factor Capital will have to chose an independent depository “to provide oversight, cash flow reconciliation and safekeeping of assets”, Grimsley also said, pointing out that this will win the investors’ trust that their profits and the value of the assets the fund will hold are real and verified.