Independent third-party regulator the Financial Commission has announced that IBinex, a cryptocurrency exchange and liquidity provider (LP), has joined the commission as its newest member and will be complying with the freshly launched crypto legislation.
Back in September, IBinex had announced to Forex Magnates their intention to partner with the Financial Commission and become a founding member of its new crypto unit.
The recent announcement follows after an extensive review of the IBinex’s trading platform, based on a variety of parameters and requirements from the Financial Commission’s guidelines. Forex Magnates reached out to Ibinex’s Simon Grunfeld and Peter Tatarnikov, chairman of the Financial Commission, for their perspective on the certification of the commission’s first crypto company.
1. Do you foresee an up-tick in digital currency or binary option providers enlisting with the Financial Commission?
(Peter Tatarnikov) Yes. We are currently speaking with the two largest BO technologies providers in the industry that might become certified by the Financial Commission. This will open membership opportunities for all their licensees.
Speaking of Crypto Currency LPs, we are not looking to onboard new members for now, so Ibinex will be the only regulated member, as we’d like to exercise our newly implemented regulation first and see if any amendments are necessary.
2. What has the feedback been for brokers or providers for the Financial Commission? Can you divulge any specifics on mediated cases?
(Peter Tatarnikov) Financial Commission’s main duty is resolving complaints, which means that no negative feedback proves the good work. Especially when we had really challenging cases right after the “Swiss Black Swan.” As you can imagine, there were many points of contention. Pricing, execution, stop-outs etc. So far we have been able to find an appropriate resolution for every case.
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3. What are the biggest regulatory challenges facing digital currency providers in the industry today?
(Peter Tatarnikov) An absence of regulation is the main issue. Moreover, many countries found an “easy way out” and simply prohibited Bitcoin and other cryptocurrencies, mostly because they don’t have any idea of how to regulate it. We are trying to fill this gap.
4. What do you feel are the biggest advantages to choosing the Financial Commission?
(Simon Grunfeld) The biggest advantage in choosing the FC is the trust we gain from our clients, knowing that there is a 3rd party overseeing our business, in the interest of the brokers who service retail traders.
5. What types of clients or individuals are you targeting with this self-regulatory initiative?
6. How many brokers are using your product and can you discuss any growth potential for your platform?
(Simon Grunfeld) Since our going live earlier this month, we are currently serving two brokers with a number of opportunities in the pipeline. We have seen the volume of trades double from one week to the next, as the adoption has been swift by the retail traders.