Prime Factor Capital Licensed by the FCA
The Financial Conduct Authority, a finance watchdog that’s known for their resiliency, has approved its first even cryptocurrency-focused investment fund. Prime Factor Capital, the Crypto Management Firm in London now holds a full-scale license from the FCA.
This marks the first time that the Financial Conduct Authority has approved a cryptocurrency hedge fund. Prime Factor Capital will now have to follow and obey the regulation guidelines implemented by not only the FCA but by also the European Securities and Markets Authority. The management firm will be able to maintain 100 Million Euros in its hedge account at all times with this license.
The Chief Operating Officer with Prime Factor Capital, Adam Grimsley, spoke with the Bloomberg report and stated: “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.”
Prime Factor Capital launched its management services in the United Kingdom & Britain in 2017. Formally, the founders of this crypto management firm used two work with Blackrock; a ceremony was focused on ex-energy derivatives. Currently, there are now four corporate leads to maintain PFC in London. Collectively, they’ve been targeting investors and traders that have high-net valuations. They provide unique services that would allow them to offer management services to their crypto-related finances.
The management firm has seen incredible growth in the last three months, with a 121% jump in trading activity. This is substantial considering that over two years; the company saw an increase of 157%. Prime Factor Capital doesn’t indicate the digital assets relating to these growth percentages.
This crypto management firm will now have to abide by the regulatory standards imposed by the FCA. One of those rules is hiring a third-party account custodian that’ll protect crypto holdings for the firm. Refusal to follow any of the guidelines would result in the license potentially being terminated.