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.

Ukrainian Railways Uncovers Bitcoin Mining Farm at Lviv Branch

On Friday (November 15), the state-owned Ukrainian Railways ("Укрзалізниця" in Ukrainian, which is pronounced "Ukrzaliznytsia") announced that it had found out that its Lviv branch was illegally operating a Bitcoin mining farm powered by the company's electricity (which is paid for by taxpayers in the country).

Ukrzaliznytsia's press release stated that its security department, along with law enforcement officials, had found a Bitcoin mining farm during an inspection of the premises of the Lviv branch; this "so-called farm" was being "organized by officials of the Lviv Railway unit." 

The person who filed the report on the alleged criminal activity was Oleg Nazaruk, who is the Director of the Department of Economic and Information Security of Ukrzaliznytsia JSC.

Nazaruk said:

During the inspection of the premises where the so-called farm was located, more than 100 pieces of computer equipment were identified that were generating bitcoins. The aforementioned equipment was connected to the Ukrzaliznytsia power grid. The estimated amount of losses since the beginning of the year is UAH 1 million.

The press release interestingly mentioned that, according to the laws of Ukraine, "the issue and circulation of cryptocurrency in the territory of Ukraine is prohibited."

The collected evidence has been passed to the Ternopil Police Department of the Main Directorate of the National Police in Ternopil Oblast.

According to a report by Kyiv Post, this is not the first time that state employees in Ukraine have been caught stealing electricity to mine cryptocurrencies. Back in August 2018, Ukraine's national security agency (SBU) arrested workers at a nuclear power plant (in the city of Yuzhnoukrainsk ) who were illegally mining crypto using electricity from the plant.

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