December 15, 2014 Hong Kong and New York: Financial Commission has today announced the successful completion of certifying the IBinex platform for Cryptocurrency trading.
The announcement follows a thorough review of the IBinex trading platform where the Financial Commission certified the IBinex Cryptocurrency Exchange based on a detailed set of criteria and requirements as outlined in its guidelines. This milestone for IBinex enables its solution to be available to member firms of the Commission, as a certified platform.
The news follows the initial launch of the Cryptocurrency Financial Commission (CFC) division earlier this year by the Financial Commission, and the subsequent collaboration to provide outsourced regulatory and compliance oversight to iBinex ahead of its planned 2015 launch.
Purpose of Certification is to Verify a Minimum Set of Criteria for Member Firms
As traders are increasingly looking for opportunities to speculate across various assets, the newly emerged digital currency or cryptocurrency market has already proven to be an interesting area and appealing for investors, traders, and those who believe digital currencies may replace fiat currency in the future.
Like any newly developing market, cryptocurrencies have already faced a number of challenges with some prominent Bitcoin exchanges going out of business, and various hacks, thefts, and related frauds ensuing in various parts of the world. This has led to regulators and lawmakers investigating how to approach this industry, and consequently is causing new ways for companies and clients to contemplate how to best protect themselves amid these concerns.
With this in mind, the Financial Commission is working closely with its Dispute Resolution Committee (DRC) and experts in the digital currency field, and firms such as IBinex to examine best-practices with regards to cryptocurrency offerings, so that online brokers and their traders can find a suitable solution.
Parallels Between Certifying Forex, Binary Options and Cryptocurrency Solutions
While the process for certifying technology for Cryptocurrency trading may differ from forex or binary options trading platforms, the essence is the same with regards to helping to ensure that high standards of execution and order processing are maintained, in addition to other important standards that member firms must uphold.
These and other key areas that are reviewed include elements related to price discovery, disaster and recovery procedures, security, data encryption, stress-tests, and system update-procedures, and other items within the technology infrastructure of a broker/exchange or technology-developer.
Since the Financial Commission needs to confirm that its supervisory capabilities are applicable in such cases, it requires that brokers or technology developers uphold certain standards that meet its certification requirements to help ensure that a minimum set of guidelines are in place for customers.
IBinex Joins List of Certified Platforms by the Commission
|The certification of IBinex marks the first Cryptocurrency exchange that has joined the Financial Commissions list of certified platforms.
Operated by FinaCom PLC, the Financial Commission is the first neutral 3rd party dispute resolution organization, and provides its member-firms and their clients the ability to resolve disputes using the most efficient process currently available, thanks to the organizations unique structure.
To learn more about certified platforms such as IBinex and how the Financial Commission operates, more information can be found under the Platform Certification section on FinancialCommission.org