CME Bitcoin Index Provider Receives EU's First Cryptocurrency License

CF Benchmarks has become the first cryptocurrency index provider to be recognized as a benchmark administrator under the European Benchmarks Regulation (EU BMR).

The UK Financial Conduct Authority (FCA) has authorized CME's cryptocurrency index provider CF Benchmarks as the administrator, confirming that financial institutions can use the company's indices in any European financial products after the full implementation of the European Benchmark Regulation on 1/1/2020.

CF Benchmarks CEO Sui Chung stated that this means the indices used by the CME Group in Bitcoin futures contracts can now be legally used by EU cryptocurrency companies, adding:

In Europe, both the use and provision of indices are regulated, so for all regulated companies in Europe, if they are using benchmarks, they must ensure that it comes from a regulated benchmark provider.

He further mentioned that the regulatory scope of EU financial institutions' benchmarks is very broad, and pointed out that large banks and asset management companies use indices for various purposes.

There are many regulated companies, if they are indeed considering launching products referencing cryptocurrency indices, they must ensure whether they want to list them after 1/1/2020.

Although Chung said he cannot disclose any specific company names at this stage, he has heard of companies interested in launching products that can track the indices in the coming months.

Chung then stated that even if the UK exits the EU in the coming months, CF Benchmarks will maintain this approval. He said:

Even in the event of Brexit in the UK, this specific financial regulation has the same status between the UK and Europe.

As they say, "data speaks," as cryptocurrency indices gradually gain regulatory approval, the public's skepticism about this area will diminish, and they will use legally recognized and trusted indices to analyze the current situation. The EU's approval is a significant positive milestone.

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