Crypto Exchange Vows to Protect Traders Against Deceptive Business Practices
The Crypto assets Platforms Assocation (CAPA) in Turkey issued a statement saying it is firmly against any measure which victimizes and endangers the sufferers’ financial assets, following recent deceptive business practices of a large crypto currency exchange.
Exchanges Trading in Unregulated Markets Banned
CAPA warned crypto currency exchange platforms against offering crypto currency futures or trading and investing services in unregulated markets. Following the warning, any exchange found to be operating in any unregulated market will be banned from the CAPA exchange.
CAPA and Its Crypto Exchange Concerns
CAPA’s stance on crypto exchanges follows a few previous warnings it had issued to exchanges. These include:
- no platforms should offer exotic or high-risk products without detailed explanation and guidance to potential investors on the potential risks involved
- no platforms should ever solicit investments that promise returns with too good to be true promises
- platforms should always apply rigorous KYC/AML procedures.
Crypto Exchanges Urged to Uphold High Industry Standards
In its statement, CAPA calls on crypto currency exchanges to work towards higher industry standards and provide a secure environment for investors and traders, to protect them from falls victim to scam and fraudulent business practices.
CAPA removes any financial institution from its list of members if it fails to uphold these standards. We hope this will ensure that there’s a safe and secure place for all traders to take part in the market.
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