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.

Telegram Pulls Plug on Its TON Blockchain Platform and Gram Tokens

Telegram is pulling the plug on its Telegram Open Network (TON) blockchain platform and the Grams token, after years of battling with the U.S. Securities and Exchange Commission (SEC).

In an announcement published on his public Telegram channel, the firm’s founder and CEO Pavel Durov said:

Telegram’s active involvement with TON is over. You may see – or may have already seen – sites using my name or the Telegram brand or the ‘TON’ abbreviation to promote their projects. Don’t trust them with your money or data.

In an accompanying blog post, Durov said the SEC’s winning of a preliminary conjunction in a U.S. court led to the decision, as it stopped Telegram from launching the TON network, or distributing the Gram tokens.

The move is rather abrupt as Telegram said less than two weeks ago it was looking to launch the network in April 2021. Last month, the firm announced investors could receive 72% of their funds back immediately, or 110% in a year once TON had launched. In the recent blog post, Durov didn’t specify whether investors would be refunded.

The Telegram Open Network was a blockchain platform that was set to offer anyone with a smartphone access to a decentralized cryptocurrency. Last October, however, the SEC ordered Telegram to halt its token sale as the firm reportedly failed to register an early sale of $1.7 billion worth of Gram tokens with the regulator.

The funds were raised in pre-initial coin offerings (ICOs) that Telegram conducted back in 2018. In his announcement, Durov argued American courts should not be able to stop the sale of the cryptocurrency outside of the country, and urged others to take up the fight for decentralization. Per his words, it may “well be the most important battle of our generation.”

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