CF Benchmarks, a cryptocurrency index provider, has obtained a licence from the UK Financial Conduct Authority (FCA) to operate as a benchmark administrator under European Benchmarks Regulation (EU BMR) that is slated to be fully effective from next January.

The FCA consent is said to be a first for cryptocurrency index providers.

Now, asset managers and trading firms will be able to leverage CF Benchmarks’ indices to launch cryptocurrency products, such as ETFs, in line with European regulation.

CF Benchmarks CEO Sui Chung said: “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.

“Reliable and trusted benchmarks are critical to growing the cryptocurrency ecosystem as they attract more individual and institutional investors to the asset class.”

Using proven indexing techniques, CF Benchmarks manages the CME CF Cryptocurrency pricing products and the CF Cryptocurrency index, family.

The company said that its employed methods provide a strong framework with “anti-manipulation safeguards to ensure the quality, integrity, and reliability of its indices”.