Compensation Fund

Qualifications and Objectives of the Compensation Fund

Crypto Regulatory Affairs Commission extensive experience and highly qualified staff enable us to accurately assess all the circumstances of a broker-trader dispute and reach a decision that is fair to both parties. Our goal is to provide companies and their clients with the opportunity to resolve their conflicts without involving official regulatory authorities. To this end, we have created a Commission that reviews each dispute, providing expert and fair decisions.

What Is the Crypto Regulatory Affairs Commission Compensation Fund?

The Compensation Fund is a component of our Company whose purpose is to provide guarantee payments in situations where it is required to ensure the safety of one of the parties. This includes situations where a broker refuses to comply with the decisions or where it loses its member status and, as a result, the obligation to comply with them ceases.

Who Is Protected by the Fund?

The Fund may compensate any client of a broker who has membership status, if the Commission determine so. It is important to note that the Fund is not liable for any damages incurred by a client if they are the result of their own actions. Since a broker’s debt to one client does not affect the other ones, they are not entitled to compensation from the Fund.

What Are the Fund's Sources of Funding?

The Fund is replenished by depositing funds from brokers with membership status into a special protected account. The amount of these contributions is set at 10%. These contributions may only be used for the official needs of the Fund, and therefore, they are protected to the maximum extent possible from being used for any other unrelated purposes.

What Is the Maximum Compensation Limit?

A client who has suffered financial losses as a direct result of an inappropriate broker’s actions may receive compensation of up to €100,000. In cases where multiple clients have suffered losses as a result of an inappropriate broker’s actions, they can reasonably expect the aforementioned maximum compensation amount to be divided equally among them.

Payments of Compensation

Terms of Payments to Clients
The Commission sets specific timeframes for compensating clients who suffered losses due to the actions of brokers, ensuring that affected individuals receive fair and timely restitution. Once a decision is made to terminate the broker’s membership status, the Commission undertakes to provide compensation within 90 days.
Actions According to the Decision
The Commission reserves the right to take all necessary actions aimed at implementing the final decision and, ultimately, ensuring that the Applicant receives the appropriate compensation. It is important to note that the Applicant should be prepared for the fact that these actions may also include his/her own verification.
Distribution of the Compensation
There may be multiple (two or more) Applicants filing complaints against the same certified broker, and the total amount of losses incurred may significantly exceed the maximum allowable limit. In this case, the maximum available compensation is carefully divided among all Applicants, with each of them receiving an equal share.