Crypto Conduct Authority Providing Independent Certification of Crypto Technology Provider

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(Newswire.net — April 9, 2022) — Consumers/traders who are unable to resolve problems with cryptocurrency and blockchain service providers that are members of the CCA can contact the Crypto Conduct Authority, an external dispute resolution agency. In order to provide traders and brokers with a new way to fix any problems that develop during the trading process on the cryptocurrency market, the Crypto Conduct Authority has set a goal of providing them with a new strategy. This Crypto Conduct Authority review will discuss how effectively this external dispute resolution agency (EDR) solves the issues between the brokers and the traders and why their existence is so important in the crypto trading market.

Crypto Conduct Authority Overview

The Crypto Conduct Authority (CCA) is an autonomous organization with the capability of providing dispute resolution services to its members. Neither the Crypto Conduct Authority nor any other EDR authority in any jurisdiction has regulated or registered with them. Consumers and businesses that work in the Financial Services Sector and who agreed to abide by the CCA (Crypto Conduct Authority) rules are considered Members of the Crypto Conduct Authority. 

In order to achieve its goals, Crypto Conduct Authority is doing the following: 

  • Provide clients with a free and easily accessible option for legal proceedings to address their complaints against Members.
  •  Act as a grievance redress body for the Financial Services Industry.
  • Actively expedite resolving the complaints with their financial services companies who are members of the Crypto Conduct Authority.

The Crypto Conduct Authority is not a regulatory authority, and it does not claim to become one. An impartial alternative dispute resolution body, the organization, was founded purely to settle conflicts between traders and brokers transparently and efficiently amicably.

Traders can also take advantage of the “Check Your Broker” feature of the Crypto Conduct Authority database to determine the current status of their broker, or they should search financial regulators to determine whether their broker is currently licensed in a certain nation of interest.

The concept behind Crypto Authorities is to establish a neutral third-party committee to handle fairly and address complaints in order to promote a more expeditious and easier solution than that provided by industry regulators and the judicial system.

The assets and profits of the CCA are utilized solely for the objectives of the organization’s operation (including the creation of the Compensation Fund), and also, no portion of these assets or income is paid to the members of the Crypto Conduct Authority, either directly or indirectly.

The Crypto Conduct Authority (CCA) uses a portion of its assets and revenues to fund a compensation fund, which serves as an insurance plan for those who file claims with authority. This money is stored separately in a bank account from the rest. In order to support the Compensation Fund, a set amount of the monthly membership fees is deducted from each payment. The compensation fund only reimburses fees up to the monetary compensation currently available to each applicant.

The amount of the compensation fund is not fixed, and it can be changed due to many factors. The Crypto Conduct Authority has mentioned on its website that “The amount of the present monetary compensation cap may be increased or decreased at any time without notice. Any modifications to the financial compensation limit will be posted on the Crypto Conduct Authority’s website as they occur.”

Easy Membership Procedure:

Getting a membership with CCA is a straightforward procedure, and there is not a lot of documentation and other requirements involved. If a broker wants to be a member of the Crypto Conduct Authority, all it has to do is open the CCA web page. It should go to the broker’s section and from there to “Apply for Membership.” There it will find two online forms. One is about the general information about the broker, which includes the registered name of the broker and its official website

Another online form that brokers must fill in is the contact person information if the Crypto Conduct Authority accepts the broker membership request. This form includes the contact person’s full name, phone number, position held in the brokerage firm, and official email address. 

Simple Criteria To Become A Member Of Crypto Conduct Authority

The criterion to become a member of CCA is simple and can easily be achieved by many brokers. The criteria which s published on the website of the Crypto Conduct Authority are:

  1. A potential broker-member must have worked in the financial services business for a minimum of three years before applying to become a member and receiving certification.
  2. Suppose the applicant has been employed for less than three years. In that case, the Crypto Conduct Authority reserves the right to request at least two professional references from a shareholder, director, senior executive, or similar officer of a firm or financial services firm that has been in operation for more than three years in order to consider the application.
  3. A member’s subcategory of membership with varied pricing and payment criteria may also be available, depending on the number of Complaints against that person currently pending and other services offered by the Crypto Conduct Authority. 

Apart from fulfilling the criteria mentioned above, the member brokers are also supposed to fulfill some other obligations such as:

  1. Members of the Crypto Conduct Authority may be required to meet financial requirements for all or part of their membership. 
  2. The Crypto Conduct Authority may implement reporting obligations for all or some forms of membership

Comprehensive Procedures To Ensure The Brokers Are Following The Rules

Crypto Conduct Authority is very serious about all of its rules and regulations being followed by brokerage firms. It does not compromise on any of its rules and makes sure that the clients of its members receive a smooth and efficient trading platform. For this purpose, the Crypto Conduct Authority performs an annual audit of its members. 

The clause of the annual audit is included in the agreement between the CCA and the brokers, and the brokers agree that “The Crypto Undertake Authority retains the right, at its sole discretion, to conduct a yearly audit of the Member in order to ensure that the Member complies with the Terms and Conditions.”

Each member agrees to collaborate with the Crypto Conduct Authority if the Crypto Conduct Authority initiates such an audit, to provide Crypto Conduct Authority with complete access to its premises and employees, and to provide Crypto Conduct Authority with just about any information and documents necessary for Crypto Conduct Authority to conduct an audit as soon as the Crypto Conduct Authority requests it.

Respond To The Multiple Types Of Complaints

The Crypto Conduct Authority responds to multiple complaints. The Crypto Conduct Authority deals with a Complaint by referring it to the independent financial Committee if, in regards to a Financial Service provided by a Member, such Member has:

  • Violated the terms of the agreement entered into between both the Member and the complainant in relation to such Financial Service; 
  • Violated the terms of the agreement between the Member and the complainant in relation to such Financial Service.
  • Had violated rules of good conduct in the financial services industry; had been unfair to the complainant.

Boost The Trader’s Confidence In The Brokers

The best thing about Crypto Conduct Authority is that it has not obliged its members to include all the dispute resolution clauses in the agreement signed between a broker and its trader. This step shows the level of professionalism of CCA and how serious this autonomous body is to ensuring fair and transparent crypto trading. 

Members must make changes to their contracts with customers to file a complaint with the Crypto Conduct Authority against that Member. The purpose of this clause is that all the traders know that its trading platform is a member of CCA, and in case of any disagreement or misunderstanding, both parties can consult Crypto Conduct Authority. This way, the traders’ confidence is boosted because they know that their broker will provide them with fair trading conditions and not charge any hidden charges and commissions. 

Ensure That All Its Members Have A Disaster Recovery Plan

It is one of the significant features of the Crypto Conduct Authority. The CCA ensures that all its member brokers have a comprehensive and effective disaster recovery plan. As we all know, highs and lows are all part of the business, but successful businesses have an effective disaster recovery plan. This plan ensures that the business is ready for any situation and values the money and efforts of all its stakeholders. 

Because disaster recovery and business continuity issues are of critical importance, the Crypto Conduct Authority believes that merchant technology vendors must take a proactive approach to ensure that they have an acceptable disaster recovery plan in place.

The following information must be included in the disaster recovery and business continuity plan: 

  • a description of backup facilities; 
  • a procedure for implementing the disaster recovery/business continuity plan; 
  • disruptions caused by third parties;
  •  annual testing;
  •  rules for communicating with the Crypto Conduct Authority; 
  • third-party contact information; 
  • Employee and emergency contact information.

Autonomous And Unbiased Decision Making

The dispute resolution process of the Crypto Conduct Authority is transparent and unbiased. It has its dispute resolution committee, and none of its decisions are influenced by its members. The Crypto Conduct Authority’s decision-making mechanism and management are separate and distinct from its members.

It is the sole responsibility of the Dispute Resolution Committee and the team of the Crypto Conduct Authority to consider and decide on Complaints, and they report only to the Board of Directors.

The Board is responsible for monitoring the Dispute Resolution Committee, ensuring that the Dispute Resolution Committee and Crypto Conduct Authority staff make independent decisions, and ensuring that the Crypto Conduct Authority and its dispute resolution process remain independent of the cryptocurrency industry.

The Dispute Resolution Committee Does Not Have Any Representative From The Members

To ensure that the Crypto Conduct Authority is considered independent, the Council does not include representatives from Members of the Dispute Resolution Committee of the Crypto Conduct Authority.

To establish a Dispute Resolution Committee, only the Crypto Conduct Authority has the authority to do so. To the extent permitted by these Rules, the Dispute Resolution Committee is the only body that has the authority to: 

  • make any decision permitted by these Rules, including but not limited to determining whether a Complaint falls within the jurisdiction of the Crypto Conduct Authority and issuing an order based on that determination; 
  • to issue an Order;
  •  And to make an Award.

The Dispute Resolution Committee has the powers, functions, and obligations outlined in these Rules and any other powers, functions, and responsibilities that the Board may assign or delegate from time to time.

Prompt Response to Complaints

The dispute resolution process is not lengthy, and the CCA dispute resolution committee tries to resolve it within the set schedule. The client can file a complaint within 45 days of the disagreement. Once a complaint is received, the Crypto Conduct Authority staff checks that the complainant has first contacted its broker Member and that the problem is being handled through the IDR (Internal Dispute Resolution) process before taking any further action.

According to the IDR Procedure, a broker is required to respond to a complaint in a thorough and detailed manner as quickly as feasible, but no later than 10 business days. Alternatively, suppose the customer has gone through the broker’s IDR Procedure and is dissatisfied with what has happened. In that case, they have the option of filing a formal complaint with the Crypto Conduct Authority.

The CCA dispute resolution committee completes the investigation process within 5 business days and decides based on the outcomes of the investigation. After the decision is taken, the member broker abides to accept the decision, and the client (if agrees to the decision) has to respond within 14days. 

A Compensation Fund For Clients

The compensation fund is a unique feature of the Crypto Conduct Authority. This fund secures the traders’ benefits and makes sure that all the losses that a trader has incurred due to the incompetency of the broker are compensated. 

The Crypto Conduct Authority Compensation Fund serves as insurance for the clients of its member brokers. This fund was established in 2014. It is only employed in the event that the broker refuses to comply with the Commission’s judgment or if they are dismissed from the Commission’s payroll without being compensated as a result of a decision that has been rendered against them.

Money to the fund is obtained by deducting ten percent of the monthly membership fees, which is then placed in a secret bank account with a high level of confidentiality. These monies are not permitted to be utilized for the activities of any other organization.

The commission fund is only be used if the Commission decides the client’s favor, which they must comprehend. The fund was not established to cover any losses sustained by traders while participating in independent trading. It does not extend to the entire client base if the broker defaults on its obligations. The Fund can only cover decisions in which the sum of the judgments is up to €20,000 per customer of a brokerage from the database and only such decisions.

If a member fails to cooperate with the Committee’s judgment, the Crypto Conduct Authority can use funds from the Compensation Fund to satisfy the complainant. No member has any right to any portion of the Compensation Fund for any reason, including the termination of a member’s membership with the Crypto Conduct Authority.

Suppose the Compensation Fund does not have enough cash to cover multiple Complaints made against a member or members. In that case, the Crypto Conduct Authority maintains the authority to allocate the Compensation Fund as it sees proper based on the number of Complaints submitted against that member or members.

Order Execution Certificate For Member Brokers

The clients get the compensation fund if the brokers do not accept the dispute resolution committee decision, just like the members get the certificate if they execute the order. There are a lot of benefits of the order execution fund, for instance:

  • Provide an additional layer of transparency to the brokerage firm by emphasizing the quality of transaction executions.
  • Prove to the clients if the members receive fair and transparent pricing.
  • The members who have received the order execution certificate also enjoy special offers.

Conclusion

The ability to properly manage risks and satisfy your customers’ needs is enhanced due to your membership in the Crypto Conduct Authority. You can convince your customers that they will be conducting trade in a fair and equitable environment. It is possible to demonstrate your dedication to keeping the rigorous quality of corporate honor and corporate values in your company by becoming a member of the Crypto Authority. Your customers will have access to independent, experienced, and professional people who will assist them in resolving any complaints they may have against you.


Crypto Conduct Authority

Website: https://cryptoconductauthority.com/
Address: 40 Basinghall St, London EC2V 5DE, United Kingdom
Email: contact@cryptoconductauthority.com
Parent Company: Crypto Frugal LTD
CEO: Veronica R. Kurtz