The first of its kind Sports Resolution Mechanism
The first of its kind Sports Resolution Mechanism for Crypto Traders and Investors
Over the past few years, there has been a lot of talk in the block and digital asset industry about regulation and investor protection. On the one hand, some states are taking steps to inform investors about the risks associated with investing in token and block projects, on the other hand, some jurisdictions are developing certain regulatory aspects that allow or restrict the use of digital currencies to trade or buy products or services.
This is due in part to the fact that existing laws do not yet recognize digital assets, and some regulations that would regulate this area have not yet been adopted in most States. However, even where such laws have been enacted by regulators, mechanisms to protect cryptographic investors are still evolving. In comparison, equity and forex investment has long had a wide range of statutory legal protections provided by a large number of regulators for retail brokers in the US, UK, Japan, Australia and other large and emerging jurisdictions. As more digital asset industry associations and think tanks emerge, we look forward to better defining token classification and legal differences across jurisdictions and hope to contribute to this process, both directly through working with block companies and government agencies and through educating end users and investors.
Dispute resolution services
Despite the existence of separate laws and regulations, such as AML and KYC, there is absolutely no process through which crypto traders and investors can file complaints with a third party, such as a government regulator or an independent non-government organization or arbitrator, to resolve a claim or dispute arising between such traders and their digital asset trading or custody service providers.
The Financial Commission is an independent, self-regulatory organization for resolving disputes in the Forex/CFD, digital currency, and blockage markets that offers effective dispute resolution solutions for crypto traders and investors to activate self-regulatory activities in the absence of government sponsored mechanisms.
As part of the Financial Commission's dispute resolution service for the Association's Blockchain members, traders and investors owning digital assets can file their claims and receive an impartial and fair solution in case the dispute cannot be resolved directly with the service provider. The Blockchain Association relies on an Expert Blockchain Committee, which consists of finthex and crypto currency market experts.
By submitting a claim to the Blockchain Association, a trader or investor receives a comprehensive solution from the team of Expert Advisors, which will provide the applicant with all the information and recommendations on what options are available as a next step in the dispute settlement. Since the dispute resolution process is currently not based on established market rules, the solutions presented are not binding on the client and its service provider, but are of significant value in the form of recommendations for both parties.
Compliance with Membership Rules
Similar to the dispute resolution services offered by the Finance Commission for other asset classes, such as FX and CFD, members of the Blockchain Association will need to comply with membership rules and certain standards to ensure compliance with the legislative space.
Claims filed with the Blockchain Association of the Finance Commission are divided into the following categories:
Transaction: problems with the speed or actual processing of a Blockchain transaction of digital assets. On the exchange, inside an electronic wallet or through a broker.
Security related: Problems arising from theft due to unauthorized access to personal information or a block entry. This may be due to the fact that the service provider has compromised or hacked into the client's own account.
Investment: cases where client funds are transferred to a third party for investment purposes, be it to convert fiat funds into digital assets or to speculate on prices or to trade digital assets acquired with client funds.