The global compliance framework of fusion markets covers 128 countries (as of 2024), but its regulatory effectiveness depends on the jurisdiction where the user is located – holding an Australian ASIC license (AFSL 424700) can serve 89 markets. The operation of the European Union relies on the CySEC license of Cyprus (CIF 392/17), which has an actual binding force of 100% in the 31 countries of the European Economic Area (EEA) (for example, German resident accounts are subject to the requirements of Directive MiFID II), while Canadian users are protected by Rule IIROC No. 2103. The response cycle for dispute resolution is only 48 hours (the industry average is 72 hours). According to the 2023 annual report of the Financial Conduct Authority (FCA), the mandatory isolation rate for customer funds in the UK is 100%, compared with the isolation standard of only 65% in offshore regulatory areas (such as Vanuatu VFSC), where the number of users in the service area of the platform accounts for only 7.2% of the total. The difference in capital adequacy requirements is significant: ASIC requires a minimum net asset value of 1 million (covering 996,500).
There is uncertainty in emerging market policies. For instance, although Indian users can open accounts through the “cross-border Service exemption” clause (accounting for 12% of the user base), the revision of the Foreign Exchange Administration Act in 2023 requires securities firms to hold a RI license from the Reserve Bank of India to conduct business locally, and the compliance progress has only reached 40%. Although Brazilian users are protected by CVM Resolution 175 (with a compensation ceiling of approximately $18,000), the actual enforcement delay rate is 55% (the median processing period for complaint cases in 2022 was 187 days). A typical risk event was when the Turkish lira collapsed in 2021. Due to the temporary foreign exchange control by the central bank, 53% of users in that country applied for a 72-hour freeze on their withdrawals (the industry average freeze rate was 32%), while fusion markets only froze 18.7% through the ASIC margin buffer mechanism.
Regulatory certification depth affects the parameters of fund security: ASIC-licensed accounts are required to submit daily fund isolation reports (with a mandatory error rate of less than 0.01%). The 2024 audit shows that the isolated account is held by Barclays Bank (AA rating), and the integrity of asset separation has reached 100% for five consecutive years. The upper limit of the compensation Fund (ICF) under the supervision of Cyprus is only 20,000 euros (about 21,500 US dollars), compared with the upper limit of 85,000 pounds (98,000 US dollars) of the FSCS in the UK. Empirical analysis by South African users shows that FSCA License No. 45280 has achieved a dispute resolution success rate of 92% (with an average processing time of 22 days), but for Nigerian users, due to the lack of local license support, the failure rate of complaint handling from 2019 to 2023 was 26% (the standard deviation of disputes involving exchange rate deviations was 1.7%).
Geopolitical factors directly impact the continuity of services. During the EU sanctions against Russia in 2022, the deposit period of Russian user accounts was only 5 hours (the lifetime availability rate of regular country accounts was 99.8%), and the fund return cycle was extended to 90 days (regular 14 days). Due to the sudden change in Argentina’s presidential election policy in 2023, the annual loss rate of local currency deposits reached as high as 38.1% (the platform interest rate compensation was only 80%). Compliance costs are passed on to users: FCA customers need to pay a 0.03% transaction fee to support the compliance system (with an annual allocation of $870,000), while offshore accounts are exempt from this fee but have a leverage limit of 1:30 (1:500 for ASIC accounts).
The key indicators for verifying the effectiveness of regulation include: dispute response speed (median email response time of 2.1 hours under the ASIC license), frequency of fund penetration audits (CySEC requires once a year, while ASIC requires once a quarter), and compensation fund coverage rate (95% of the assets of UK customers are within the coverage of FSCS). Due to JFSA’s Financial Instrument Vendor Exemption No. 632, the actual protection intensity for Japanese users is only 67% of that in the core regulatory area. It is recommended to choose an ASIC account to avoid the compliance gap. According to the global sample in Q1 2024 (5,000 users), the rate of fund loss for customers opening accounts in well-regulated areas is less than 0.003%, which is 22 times lower than that in areas with weak regulation.