The Financial Commission Creates Dispute Resolution Service for Crypto Traders

The Financial Commission, an independent self-regulatory organization, and external dispute resolution (EDR) body, has made known its plans to inaugurate a dispute resolution service specifically for crypto traders.

The Commission, whose work is centered around Forex markets and contracts-for-differences (CFD) brokerage, has decided to create the special service for crypto traders due to the fast-paced growth of the sector. The lack of a means for crypto traders to resolve potential problems with brokers and exchanges is another reason the Financial Commission saw the need for the new service.

As part of the new offering, the commission plans to establish a Blockchain Expert Committee (BEC) which will be made up of crypto and Blockchain industry professionals, and have the mandate of helping the commission to fully grasp the difficulties crypto traders experience. It would also serve as an avenue for crypto traders and their clients to receive consultations as well as settle any disputes they may have.

Extending The Commission’s Services from Forex to Crypto Traders

According to financemagnates.com, the Financial Commission revealed that the work of the soon to be set up BEC would mirror what the CommissiontheCommission already provides for forex traders. The crypto traders would also enjoy some of the services the commission provides for its forex-trading members.

The following are what the commission guarantees its forex traders:

  • Protection by Commission’s Compensation Fund for up to €20,000 per case
  • Access to a neutral and interest-free realm to address any complaint
  • A swift and efficient investigation and resolution (as opposed to rigid and bureaucratic regulatory bodies);
  • Ability to learn and receive answers, never being “in the dark”.
  • An opportunity to choose from more than 30 approved Members

The crypto traders, like the forex traders who are members of the commission, will benefit from valuable information and professional advice on how to tackle problems they face while going about their work.

In the meantime, there are, however, some important differences with respect to the services crypto traders would be given. The resolutions made by the commission are all binding on members involved with Forex and CFD brokering.

Crypto traders in contrast, will not benefit from this feature when it comes to disputes in which they have been poorly treated.

The Financial Commission is designed to help engender good business practices and ethical behavior among its members in the various markets in which they operate. It is expected that the extension of their services to crypto traders will help foster higher standards of ethical behavior in the industry - a  development which many within the industry will applaud.

JPMorgan Chase Accused of Fixing Metal Prices Despite Talk of Bitcoin Market Manipulation

  • Wall Street giant JPMorgan Chase's metals desk has been accused of 'thousands' of trades related to price-fixing.
  • US prosecutors have invoked RICO laws against the bank which are reserved for organized crime rings. 

While the U.S. Securities & Exchange Commission (SEC) and other regulatory bodies have been critical of bitcoin over market manipulation, new reports reveal that JPMorgan Chase is facing allegations of fixing prices for precious metals. 

JPMorgan Chase Price-Fixing

According to a report by Bloomberg on Sept. 16, U.S. prosecutors have invoked the racketeering law (RICO) against JPMorgan Chase’s metals desk, which is being described as a criminal enterprise. For nearly a decade, employees of the trading desk have allegedly engaged in thousands of illegal moves to price-fix precious metals and defraud market investors. 

Assistant Attorney General Brian Benczkowski told journalists, 

Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period -- that it is precisely the kind of conduct that the RICO statute is meant to punish.

RICO is typically reserved for only the most severe, organized crime rings, with former prosecutors calling it a bold move by the Justice Department against the bank. Prosecutors claim that more than a dozen employees participated in the scheme, with two having already pleaded guilty and cooperating with authorities. 

Crypto supporters have been quick to point out the irony in JPMorgan’s situation. Jamie Dimon, CEO of the Wall Street bank, has been one of the most vocal detractors of bitcoin over the years, famously calling the crypto-asset a “fraud” in Sept. 2017.

 

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