The Financial Conduct Authority (FCA) of UK has granted a license to crypto asset management firm Prime Factor Capital to operate as a proper Alternate Investment Fund Manager (AIFM).
The London-based firm will thus be allowed to hold more than 100 million euros ($116 million) in asset under management (AUM).This was announced in a press release on July 1.
The authorization from the FCA gives Prime Factor Capital the power to operate as an AIFM under the European Union’s AIFM Directive (AIFMD). The Directive is a regulation applicable to all private equity funds, hedge funds, and real estate funds, providing a set of standards for marketing in regards to raising private capital, risk monitoring and reporting, among other issues.
According to the requirements of AIFMD, Prime Factor Capital has officially appointed a depository that is supposed to provide an additional layer of protection to investors.
Adam Grimsley, COO of Prime Factor, said:
“full-scope AIFMs are subject to heightened transparency, disclosure and reporting requirements, in addition to a number of other obligations.”
Nic Niedermowwe, CEO of Prime Factor, stated,
“This Being FCA-regulated brings us under the purview of one of the most recognised financial markets regulators globally. This is particularly relevant in the cryptocurrency space, which has repeatedly captured headlines for poor operating standards and even fraudulent activity.”
The press release claims Prime Factor to be the first asset management firm which is dedicated to cryptocurrency and authorized by the FCA. According to reports from last August, the FCA granted its third e-money license to Wirex, whose main product is a prepaid debit card that converts crypto into fiat currency for everyday use.
Receiving a license from the EU approved FCA has massive implications for Prime Factor Capital. It can now attract various types of investors to the the volatile yet highly lucrative crypto market.