CryptoCompare has received the approval of the UK Financial Conduct Authority (FCA) to act as a Benchmark Administrator. The company notes that it is only the second crypto-based firm to garner this approval. A Benchmark Administrator is an entity that has the authorization to carry on the regulated activity of administering a specified benchmark.
CryptoCompare provides data on digital assets for institutional and retail investors with real-time and historical data across 5,500+ coins and 250,000+ currency pairs. CCCAGG, is CryptoCompare’s family of benchmarks for pricing digital assets, is based on 24-hour, volume-weighted average calculation, time-penalty factor covering 500+ liquid asset pairs.
The FCA authorization was awarded to CryptoCompare’s data and index subsidiary, CC Data Limited. CryptoCompare will issue benchmarks for financial instruments, financial contracts and the measurement of fund performance.
Charles Hayter, CEO of CryptoCompare, commented on the approval:
“As digital asset markets continue to grow, it is vital that investors can access highly reliable and accurate benchmarks which are based upon market-leading research and methodologies. Over the last seven years, our pioneering standards have brought rigour and accuracy to this flourishing sector. I am delighted that CryptoCompare has now achieved FCA authorisation, creating new avenues for institutional and retail investors to gain exposure to our standard-setting digital asset indices.”
The authorization will allow service providers to create regulated financial products that are underpinned by CryptoCompare’s digital asset indices. This includes the creation and issuance of investment product referencing indices; reference rates, contract settlement pricing, portfolio asset allocation and the measurement of fund performance.