Crypto Conduct Authority emerged as one of the most valuable online organizations for the cryptocurrency trading industry. Launching this authority gave representation and voice to both, brokers and traders alike. Here are 3 Myths about Crypto Conduct Authority Busted.
They were able to resolve their matters, get valuable information about the industry, promote their business, and boost trust among their target audiences. As for traders, they were also able to get representation in disputes, learn crypto trading, and even identify the brokers that were hiding in the cloaks to deceive them later.
Now, since the launch of this service, many people have tried to spread misinformation about it.
It Provides Crypto Trading Services
That’s simply not the case. This authority isn’t there to provide you with trading services. In fact, it is doing something even more important than just providing you with a platform for trading. If you want to trade online, you will have to sign up with a broker. The broker provides you with trading software and access to financial markets. As a trader, you use the broker’s services and pay them money.
On the other hand, Crypto Conduct Authority is all about making this online industry safer through verification, certification, and dispute resolution. The authority provides its services and representation to both, brokers and traders.
It is true that CCA can provide you with many resources to help you learn to trade. It can also help you know the best and most reliable trading platforms that have signed up with it. Last but not least, as a trader, you can also get a list of brokers that you must not sign up with because they are deceptive.
It Regulates Online Brokers
That’s yet another misconception and misinformation. The function of regulating online brokers is associated with regulatory authorities. Crypto Conduct Authority is not a regulatory authority at all. It does not go into the personal matters of the brokers to know how well they are performing.
It does not go into their financial records, audit their balance sheets, and see if their processes adhere to the industry protocols or not. That’s the job of a regulatory authority and you can know about most of the regulatory authorities in the world on the Crypto Conduct Authority’s website.
What many people confuse regulation with is certification. These are two completely different terminologies with completely different meanings. When a regulatory authority gives a go to an online broker, it means that you are okay to sign up with the broker because they are legitimate and their processes have gone through the audit.
On the other hand, Crypto Conduct Authority is meant to certify the broker based on certain actions. For example, a broker might make their process transparent for their traders. If they do that successfully, they will receive a certification for the Crypto Conduct Authority.
CCA Represents You Legally
Yet again, that’s misinformation and it probably comes from the misunderstanding of certain terms. When it comes to representation, you are usually referring to someone being legally represented. However, that’s not what this organization is about.
It is all about providing you with all the information so you can avoid a bad situation altogether. However, if a dispute occurs between you and the broker for anything, Crypto Conduct Authority provides you with mediation and dispute resolution services. It will listen to both parties, prepare a resolution that goes in both parties’ favor, and take their agreements.
It is essential to mention here that whether you are a trader or a broker, you have the right to refuse to agree to the particulars of the resolution.
Final Thoughts
At this point, it should be clear to you which matters you should go to Crypto Conduct Authority for and which ones you shouldn’t. You can benefit greatly when you know the exact role that an organization is playing. So, if you are in need of resolving a dispute with your broker, you should take advantage of its services.