Fund for compensation
The organisation comprises experienced industry professionals with highly qualified theoretical knowledge and practical experience in both traditional and digital trading. Therefore, each Crypto Oversight Authority subdivision has a reliable team, ranging from experts in broker assessments, dispute resolution, and enforcement of prescribed decisions.
The Compensation Fund is one such reliable body that protects the rights and interests of both parties to a dispute, proving that the broker can be trusted by attracting clients to it and the broker’s client in case of his/her disputes with the service provider. Its goal is to ensure that the appropriate amount is received in accordance with the Committee’s binding decision.
The payment process has its own established procedure and rules, violations or deviations of which are unacceptable. This strict process ensures timely and
fair payments to each affected party.
The Compensation Fund is an internal body of Crypto Oversight Authority that guarantees a fair resolution of conflict situations between brokerage companies and their clients. If a broker refuses to comply with the Commission’s requirements or loses its membership status, the Fund will act as a guarantor of the implementation of the decision taken.
The Fund is financed by monthly contributions from members in the amount of 10%. The process of transferring these amounts is fully automatic, and the money is credited to a separate bank account. The only purpose for which they can be used is to fulfil the duties of the Fund. All other intentions are strictly prohibited by the company’s rules.
The Fund protects the interests of clients who cooperate with brokers with membership status in cases where the latter refuse to comply with the Commission’s decisions. It should be noted that the Fund does not cover client losses that are not caused by the actions of member brokers. If the broker has no debt to the client, the payments do not apply to him/her.
If a member broker fails to fulfil its financial obligations to the client, the Fund may award him/her a payment of up to EUR 100,000. It is important to note that if there are several parties affected by the same broker’s actions and the maximum amount specified above does not cover their total losses, it will be divided equally between them.
Rules for compensation payments
Compensation payment is made no later than 90 days from the date of making the final decision on changes in the status of the broker in question.
The Commission has the right to carry out all necessary checks to ensure the fairness of the decision. This also includes checking the applicant’s data.
If the total amount of compensation claimed by several applicants exceeds the maximum set by the company, it will be divided equally among them.