London-based hedge fund Prime Factor Capital has become the first cryptocurrency investment firm to be approved by the UK Financial Supervision Authority, Bloomberg reports.
The company will be regulated by the British financial regulator as a full-fledged manager of an alternative investment fund, and will also be subject to the laws of the European Union.
Thus, Prime Factor Capital will be able to hold assets of more than 100 million euros under management.
As reported by Coindesk, the founders believe that by focusing on a single asset class, even one that carries market distrust, they will surge ahead of their global competitors and become the trusted authority in crypto investing.
Also, according to European regulations, Prime Factor Capital should hire an independent custodian who will be entrusted with the task of controlling the payment of income to investors and the assets of the fund.
The company was founded in early 2018 by Michael Wong and Adam Grimsley, in the past the leading portfolio managers of the BlackRock Inc. investment fund. The position of executive director of Prime Factor Capital is held by Nick Nidermovve, a former trader of RWE AG in the market of energy derivatives.