The crypto world has huge news from the United Kingdom this week. Prime Factor Capital, a crypto asset firm has become the first crypto hedge fund to get approval from the regulators. The UK’s financial markets regulator, FCA issued a license to the firm in this regard. The firm will operate as an Alternative Investment Fund Manager (AIFM).

The startup firm, in turn, appointed a depository that will provide an additional layer of protection to the investors. The depository which is part of the AIFM Directive (AIFMD) will provide independent fund oversight, asset ownership verification, and cash flow monitoring. Adam Grimsley, COO of Prime Factor Capital said the AIFMs are a subject to heightened transparency, disclosure and reporting requirements.

Prime Factor’s CEO Nic Niedermowwe while speaking on the latest development at his firm, reflected on the benefits of acquiring an FCA license. He said the license will bring them under the purview of one of the most recognized financial markets regulators globally.