By accessing or using the operator's website and/or services, users understand and agree to the Terms & Conditions
1. Intended Use
1.1 Scope of Use
The User is granted a free license to use the website of the Operator. Moving Media GmbH, the owner of the Payment21®-brand, is the Operator of Payment21.com.
The Operator’s business model consists of facilitating the collection of Bitcoin and its use to purchase goods and services from e-commerce merchants. For this scope of use, the Operator makes a Bitcoin Cashier System available. This application includes gateway services, collection of funds, currency exchange, clearing & settlement, data processing, reporting, and compliance services.
On a supplementary basis, the operator provides a payments processing solution for OTC Exchange services (over-the-counter), Money Transfer service, Funds Acceptance, and Wallet App services (among other services as specified further herein).
1.2 Scope of Applicability
These Terms and Conditions (T&Cs) apply to the usage of all sites and services owned or run by the Operator.
Depending on the User’s jurisdiction, Users may not be able to use all the functions of the website. It is the User’s responsibility to follow those rules and laws in the User’s country of residence and/or country from which the User accesses the Operator’s site and services.
1.3 Scope of Applications
The application framework consists of the Bitcoin Cashier System and payments processing solution including add-on gateway services provided by the Operator.
1.4 Affected Parties
Operator: Moving Media GmbH DBA Payment21®, Payment21.com (“The Operator” or “The Company”) operating the aforementioned technical solution and its products and services (as described and displayed in the Web-based on-boarding procedure consisting of the customer registration and transaction monitoring system, a.k.a electronic AML Register, and referred to in the AML Due Diligence Concept, and in the AML Compliance Program, and in the AML Risk Assessment Model of the Operator) to process payments (but does NOT offer a multilateral trading platform; and does NOT offer a platform to organize initial coin/token/exchange offering (ICO/ITO/IEO); and does NOT offer means to process asset and/or security token; and does NOT offer custodian solutions for market making activities; and does NOT accept public deposits). The Operator qualifies as financial intermediary in the non-banking sector within the Swiss Anti-Money Laundering Act (AMLA) and the Swiss legal framework for regulating financial institutions, financial services, and financial markets.
Client, C: C means any holder of a Client Account (CA) verified by the Operator. C is the contracting Party (CP) for sporadic transactions as well as for repeated business relations. C is a legal entity or individual client or customer who has a direct contractual relationship with the Operator over the Web. All account types including Regulated Client (RC) or Merchant Client (MC) qualify as C. The CP registering with the Operator is hereinafter referred to as the C.
Regulated Client, RC: RC means any holder of a CA that is regulated businesses (e.g., other licensed financial intermediary).
Merchant Client (MC) is any holder of a CA that sells goods and services (but NOT Bitcoin) to their customers. MC may be a small to mid-sized business (SMB) or a large e-commerce enterprise qualifying as a B2B-customer of the Operator. The Operator maintains an ongoing business relationship with MC provided such vendor, seller, creditor, payee exceeds legal thresholds for associated products and services as per compliance tiers and transaction limits.
Purchaser, P: P means any retail customer of MC (consumer, online shopper, end-user, buyer, debtor) initiating a payment transaction. The Operator does NOT have any contractual agreement with P. The relation of P and the Operator is indirect (via MC) and of sporadic nature. P has a contractual agreement with MC whereby P and MC agree independently on the applicable jurisdiction of the underlying sales transaction for goods and services. The purpose of the related payment transactions is unique to using the Bitcoin Cashier System provided by the Operator on behalf of MC with regards to purchasing goods and services in the context of the real economy (NOT for financial transactions such as trading Bitcoin).
1.5 Account Types
Client Account (CA): An account type held by C. The Operator provides an account for OTC Exchange services (i.e., buying and selling fiat & crypto) and Money Transfer services (i.e., E-Commerce Funds Acceptance fiat & crypto, E-Commerce Disbursement, send & receive payments for payer & payee, Custody Wallet).
Merchant Collection Account (MCA): An account type held by C who qualifies as MC. MCA can be activated as an optional product and service by C, and is specifically approved by the Operator before transacting is technically possible. In this scenario, MCA is an integrated part of CA. The Operator provides such collection & settlement accounts to MC for the purpose of accepting crypto currency payments from P. MC can accept alternative payment methods (e.g., Bitcoin) through their online shop and/or POS-terminal (i.e., E-Commerce Collection). Payments originate from selling goods and services within the real economy (rather than offering financial trading accounts). Incoming payments from P represent an entry to accounts receivable of MCA and to record the collection of payments based on the sale of goods and services.
1.6 Third-party Account Type
Registered Money Account (RMA): Third-party account of C (e.g., bank account, Bitcoin Wallet, etc.) to receive settlement payments from the Operator, and to fund transactions for the CA. The RMA is under the control of C (but NOT controlled by the Operator).
Bitcoin Wallets that qualify as RMAs are subject to verification as per AML/KYC-requirements. C must register an associated a Bitcoin address (or other crypto wallet/address if applicable) for transacting. C is obliged provide the Operator with a Bitcoin address that is valid and freely available to C.
1.7 Profile Types
Purchaser Profile (PP): An online data profile given to P that is used to track payments for goods and services purchased from MC. PPs are created automatically when retail consumers purchase goods and services from MC based on data given from MC to the Operator. The PP tracks purchasing activity and may facilitate AML/KYC-procedures (if applicable). This data profile does NOT allow P to hold, receive, or send funds; therefore, it does NOT qualify as a financial account type.
Other Profile Types: On-Chain non-custodial Crypto Wallets through the decentralized Browser Extension and off-chain non-custodial Crypto Wallets.
1.8 User Types
User: Any visitor to the site.
Relevant User: Any person using the services offered by the Operator through contracting with C. In particular, the term Relevant User refers to a passive user (i.e., Purchaser utilizing PP).
Authorized User: Any authorized person (e.g., owner, proxy, employee, contractor, etc.) utilizing a CA and performing tasks on behalf of C. In particular, Authorized User refers to an active user who has completed the on-boarding procedure in compliance with law regardless if the user represents a sole proprietorship or acts as the authorized signatory of the legal entity representing C. The terms Authorized User and C may be used interchangeably within the context of these T&Cs.
1.9 Transaction Types
Incoming transaction: a) Payment transactions from P to MC for goods and services, such incoming transactions relate to the Bitcoin Cashier System provided by the Operator to e-commerce merchants. b) Payment transaction (i.e., funding) related of C to OTC Exchange services and payment transactions of C related to Money Transfer services (Funds Acceptance). c) Payment transactions (i.e., funding/“top-up”) related to Custody Wallet.
Funds Acceptance: Incoming transaction related to the E-Commerce payment processing solution sent by C sending funds (crypto or fiat alike) to pay for permissible token types such as utility token or payment token but NOT asset token and/or security token.
Outgoing transaction: a) Payments from C to C; Payment transactions related to OTC Exchange services (i.e., withdrawal for settlement) and Money Transfer services (Disbursement). b) Payment transactions (i.e., withdrawal) related to Custody Wallet.
Refunds: Outgoing transactions qualifying as refunds (e.g., money-back) based on consumer protection law in relation to distance selling.
Disbursements: Outgoing payments from C who sends payouts to C who receives payouts, thus settling the open balance of C with C through cashing out.
R-Transactions: Rejected transactions are unredeemed payments due to cancellation or technical errors linked to the block chain confirmation system.
Settlement payments: Transactions (including withdrawals) from the Operator to C’s third-party RMA.
Means of payment: Term for technology-neutral payment methods using crypto currency (P2P-Electronic Cash such as Bitcoin) or fiat money (such as cash, wire transfer, credit card, debit card).
Cryptocurrency payment: Payment made in cryptographic means of payment (e.g., Bitcoin or other crypto currency units such as Ether or other permissible token).
Fiat payment: Payment made in fiat money (funds) deriving its value from government regulation or law (e.g., currency units such as CHF, EUR, USD, CNY, INR, BRL, RUB, etc.).
1.10 Technical Terminology
Bitcoin: It means the Peer-to-Peer cryptographic payment protocol further described at http://Bitcoin.org. Bitcoin is a form of crypto currency, also known as peer-to-peer electronic cash or cryptocurrency. Transferring crypto currency is basically signing over (using digital signatures) ownership from one party to another.
Lightning Network: A second layer technology for Bitcoin as described on https://lightning.network.
Public-key: The public-key is one of the two mathematically linked keys used to secure transaction data. It is generated based on the private-key, and can be revealed to the world because the key pairs are asymmetric. The Bitcoin protocol enables users to decrypt the public-key using the private-key. This way payment data is turned into a readable format.
Private-key: The private-key is a cryptographic algorithm used as a unique identifier to authorize cryptographic means of payment. It is secret and used to encrypt (sign) payment data, making it unreadable and thus secure. In the widest sense, it is comparable to the Personal Identification Number (PIN) when performing e-banking or card transactions.
Bitcoin address: A Bitcoin address (crypto address) is a shortened version (through performing hash operations such as a checksum function) of the public-key used as an address identifying a cryptographic account. It can be associated to an account holder similar to a bank account number or credit card number.
Bitcoin Wallet: A Bitcoin Wallet is a collection of Bitcoin addresses and corresponding transaction data. It can be associated to a specific account holder. The Operator’s Bitcoin Cashier System runs its own Bitcoin Wallet (in connection with a Bitcoin daemon and lightning node) and generates intermediary addresses for each and every transaction to keep track of the payment data and to associate it properly with the Bitcoin Wallets of the parties involved.
Block chain: The Block chain supports clearing and settlement of funds utilizing cryptographic means of payment. Bitcoin-transactions are recorded into a distributed public database called the block chain, which is available internationally. The block chain follows the concept of decentralization using peer-to-peer file sharing technology. Every computer participating in the Bitcoin network running a full node has a copy of the block chain. The protocol timestamps transactions and forms an ongoing chain. It stores the sequence of events and serves as a way of authenticating transactions among users. Consensus is achieved by a proof-of-work system called mining.
2. Scope of Business
2.1 Payment Acceptance: Bitcoin Cashier System providing Collection Services
The Bitcoin Cashier System provided by the Operator comes with a hosted cashier page, and/or Payment21®Button, and/or API-driven MC-side payment checkout solution. For this purpose, an MC shall be assigned an MCA.
An Authorized User can use the MCA to establish a cashier page that allows others to easily send cryptocurrency to the MCA with the help of the Operator. MC’s cashier page may be hosted with the Operator or be self-hosted by MC utilizing the Operator’s API-technology. An Authorized User may establish and customize MC’s cashier page through the MCA settings, which allow for establishing a User handle and associated payment page URLs, uploading photos (showing products and services), and providing short descriptions.
If the Operator performs services, the first payment cannot occur until MC has successfully completed the integration tests with the Bitcoin Cashier System, adequately passed the due diligence procedure, and after the signing of the agreement by both contracting parties at the earliest. Once the Operator successfully processes a payment credit, a confirmation will be sent to MC.
The Operator does not ensure that P (buyer of goods and services) or MC (seller of goods and services) will actually complete the transaction, or is authorized to do so.
2.2 Add-On: E-Billing Services
E-Billing Services are an integral component of an MCA utilizing the Bitcoin Cashier System. Such cashier services allow for the issuing of e-invoices through the Virtual Terminal via the Operator’s MCA. To create an e-invoice, an Authorized User (payee) may post a request to the Operator to collect a specific amount due in cryptocurrency.
2.3 Add-On: Quotation Services
The Operator’s quoted price feed is labelled as Fair-Value-Rate (FVR) and is available through the Operator’s site.
For the purpose of any transaction incorporating the FVR, the User agrees, as a condition of using any of the Operator’s services, to accept the FVR published by the Operator as the sole conversion metric.
The Bitcoin Cashier System, the OTC Exchange service, and all other gateway services and/or processing solutions are subject to the Operator’s FVR, which is the liquidity-adjusted price of a given cryptocurrency amount in terms of fiat currency as quoted on the Operator’s site.
The FVR is stated as a sell price, the price in terms of fiat currency at which the Relevant User pays for goods and services using cryptocurrency through the Operator providing Bitcoin Cashier System on behalf of C.
The FVR is displayed to P at the time P approves the purchase. The Operator will provide the exchange rate (FVR) and payment instructions to P. The Operator guarantees the exchange rate to C as long as P pays within the proper time window after the payment request is created. Payment request timeout information is clearly displayed on each cashier page.
By using this service, User agrees that regardless of any change in the price of cryptocurrency between the time of transaction and its clearing and settlement, C will receive the fixed price as designated in fiat currency at the time P approved the purchase.
2.4 Add-On: OTC Exchange Services
The OTC Exchange service is an integral component of the CA issued to C (but not to P). It allows for converting cryptocurrency into fiat currency or vice versa. When buying or selling cryptocurrency through the OTC Exchange service, C is buying from, or selling to, the Operator directly. The Operator does NOT act as an intermediary or marketplace (i.e., multilateral trading facility or Bitcoin trading platform or any other regulated intermediary service that triggers the duty to obtain an additional permit from the financial market authority) between other buyers and sellers of cryptocurrency. The Operator does NOT operate an alternative trading platform but obtains cryptocurrency and fiat currency in domestic or foreign currency through proprietary trading with third-party exchange service providers and financial institutions.
The Operator offers its optional OTC Exchange service as a conversion tool to MC that has successfully linked an RMA to their CA. The OTC Exchange service allows Authorized User to designate the price of its goods and services in fiat currency (e.g., EUR) and P to pay for their purchases from such MC in cryptocurrency based on the sell price quoted by the Operator. The quoted price feed provides FOREX conversion rates as well as cryptocurrency conversion rates.
In connection with the OTC Exchange service, MC, as the merchant of record for each transaction, shall accept cryptocurrency through its corresponding CA, and/or instantly sell such cryptocurrency to the Operator using the OTC Exchange service, and subsequently receive the proceeds from such cryptocurrency sale transaction from the Operator in the relevant fiat currency. In this context, the purposes of the currency conversion relates to the acquisition of goods and services in the context of bill payment using crypto currency as a payment method, and utilizing the Operator for collecting payments.
Users can create an order by entering the desired amount and the currency of the payment. Users select the preferred payment method and follow the instructions displayed. Prices are quoted in fiat/crypto and crypto/crypto currencies. Transaction details, fees, and charges are shown in the transaction report available through the CA.
Payment can be made by bitcoin or by bank transfer or by any other means of payment available on this website. Users can convert one type of currency (e.g., Bitcoin) to another type (e.g., EUR). Users must follow the instructions on the website.
The conversion is done by transferring crypto currency to a single-use address provided by the Operator during the conversion process. Time limits apply to complete the transaction. Orders get processed by the Operator within a reasonable period of time. This period begins upon receipt of the order. If the conversion order is not processed within the aforementioned period, C is obliged to inform the Operator immediately. If C does not meet this obligation, C is not eligible to make any claim relative to the variation in the exchange rate.
2.4.1 Buy Crypto
(a) The FVR is displayed on the buy transaction in advance of submitting the order, so C knows how much bitcoin they receive on a provisional basis.
(b) A buy transaction is initiated after the order has been submitted by C and the payment notification has been received from the payment service provider (i.e., Bank but NO CASH HANDLING) and is processed by the Operator. Cryptocurrency becomes available to be sent to the RMA shortly thereafter.
(c) If the incoming fiat payment (or otherwise) is settled after the end of the temporary locking period of the tentative price quote, the FVR is updated from the provisional price to the fixed price (i.e., final price/cost). In this case, the amount of crypto available to the buyer may differ slightly from the price of the original quotation. The Operator's system provides clearing of transactions at the actual time of converting the funds. Accordingly, exchange services are billed at actual rates. Open positions may be subject to market volatility; hedging services are available at additional cost.
(d) The minimum and maximum transaction sizes depend on the compliance status of the CA and market conditions, including the status of technical systems and the network status.
(e) C has to expect a lead time of a few banking days for domestic and/or cross-border bank transfers sent until the Operator receives these funds from its payment service provider.
(f) Bank transfers must be registered in the CA before sending the funds. For identification purposes, bank transfers must include the reference number of the transaction. Bank transfers not in line with these terms are returned (after deduction of bank costs).
(g) Users receive automatic messages by email regarding the status of buy transactions.
2.4.2 Sell Crypto
(a) If C initiates a sell transaction, the FVR of the transaction is displayed on the website, so C knows what settlement payment is due in cryptocurrency on a provisional basis.
(b) If the incoming crypto payment (or otherwise) is settled after the end of the temporary locking period of the tentative price quote, the FVR is updated from the provisional price to the fixed price (i.e., final price/cost). In this case, the amount of fiat (or otherwise) available to the seller may differ slightly from the price of the original quotation. The Operator's system provides clearing of transactions at the actual time of converting the funds. Accordingly, exchange services are billed at actual rates. Open positions may be subject to market volatility; hedging services are available at additional cost.
(c) When the Operator receives a Bitcoin deposit from C with a Bitcoin volume below the minimum size or above the transaction size, funds are automatically returned to C. In this case, the returning transaction is automatically reduced with a network fee and applicable administrative charges (i.e., fraction of bitcoin). When the return volume is less than fees and charges, no bitcoin is returned.
(d) The minimum and maximum transaction sizes depend on the compliance status of the CA and market conditions, including the status of technical systems and the network status.
(e) Settlement payments are initiated by bank transfer (on banking days in the afternoon) after receiving (at least 3 blockchain confirmations required) and exchanging bitcoin.
(f) Depending on the bank account of C and the associated intermediary correspondent banks, settlement payments become available within a few banking days after the domestic and/or cross-border bank transfers bank transfers has been initiated by the Operator.
(g) Users receive automatic messages by email regarding the status of sell transactions.
2.5 Add-On: Transfer Services
The Operator provides money transfer services (i.e., domestic and/or cross-border remittance) restricted to a closed user group (CUG) whereby the AML/KYC-recommendations ("travel rule") for virtual asset service provider (VASP) by the Financial Action Task Force (FATF) is observed.
If activated and specifically approved by the Compliance Team, E-Commerce services support money transfer capability. These products and services for "Disbursement" and "Funds Acceptance” and for sending and receiving payments (i.e., transactions from C to C) require AML/KYC for both payer and payee.
Money transfer tools are offered to C on a case by case basis for the purpose of testing innovative payment solutions (sandbox-style: amounts of marginal significance for the Operator`s business model and the Swiss economy).
2.6 Add-On: Refund Services
The Operator provides refund services to C.
2.7 Add-On: Disbursement Services
The Operator provides disbursement services (payout) to C.
2.8 Add-On: Escrow Services
The Operator provides escrow services to C.
2.9 Add-On: Wallet App Services
The Operator provides Wallet App services (exempted Custody Wallet within the license-free innovation space ("Swiss Fintech Sandbox") to C.
3. Scope of Business Excluded
3.1 Payment Scheme of Significance
The Operator does NOT provide a private payments scheme for financial service providers, or a network for interbank clearing, or other conventional payment system accounts consisting of regulated custodial services, and/or does NOT make available a payment system that is of significance for the Swiss financial center on a domestic and cross-border level, or has a significant impact on the stability of the global financial system.
3.2 Secondary Markets
The Operator does NOT offer a multilateral trading platform; and does NOT offer a platform to organize initial coin/token/exchange offering (ICO/ITO/IEO) for secondary markets; and does NOT offer means to process asset and/or security token; and does NOT offer custodian solutions for market making activities; and does NOT accept public deposits, and does NOT offer any other regulated intermediary service that triggers the duty to obtain an additional permit from the financial market authority.
4. General Conditions
4.1 Client On-Boarding
In order to use any of the Operator’s services, C must first register by completing the Step-Sign-Up process (on-boarding procedure).
Users have to complete the on-boarding process if the transaction amount exceeds legal thresholds for associated products and services. As part of customer registration, the user must first activate a product and services via their profile. Depending on the selection, further specific information is requested, before the respective products and services can be activated.
Activating E-Commerce services requires online signing of a Service Level Agreement, SLA.
The Operator`s on-boarding procedure consists of compliance tiers and indicative transaction limits. Compliance tiers and transaction limits apply based on the user’s verification level. This process is broken down in different steps as follows: Tier ZERO (EUR 0/800), Tier 1 (EUR 800/2500), Tier 2 (EUR 800/4k), Tier 3 (EUR 4k/14k), Tier 4 (EUR 80k/250k), Tier 5 (EUR Unlimited). Limits can be raised through compliance checks and account upgrades. Activation of products and services is a pre-requisite for use and requires due diligence checks and approval by the Compliance Team (i.e., Compliance Officer or Compliance Committee).
Upon successful completion of the registration process, which includes approval from the Operator’s Compliance Team, the Operator will establish a CA. The Operator, at its sole discretion, may refuse to allow User to use its services, or limit the number of CAs that a single User may establish and maintain at any time.
A newly on-boarded C is required to submit supporting documentation to verify that C operates a legitimate business. Steps involved in such verification shall include, but not be limited to, providing C Company’s legal name, website, phone number, address, taxpayer identification number, User’s details, e-mail address, date of birth, social security number, government identification number, details of ultimate economic beneficiary, declaration on the origin of funds, and information regarding the bank relationship, and a designation of whether C has a retail location and/or online presence, a designation of business type, and a designation of business category. Furthermore, AML/KYC-compliance checks include verifying an RMA and conducting an online identification or video identification. Until completion of such verification procedures, a newly boarded C cannot transact with the Operator.
4.2 Due Diligence
The Operator applies global due diligence standards on CP. As part of the on-boarding procedure, the beneficial owners (Know-Your-Customer rules, KYC) of C are identified accordingly. If thresholds are passed, the Operator requests Form A, K, S or T (Statement of the Economic Beneficiary) and Form “Declaration on the Origin of Funds” from Users. Thresholds required by law are set automatically depending on the account type conditional to the purpose of transactions (payment for goods and services or money transmitting).
The Operator may also require the User to answer certain questions or take actions in order to verify the User’s identity or comply with applicable law. In submitting this or any other personal information as may be required, the User verifies that the information is accurate and authentic. The User authorizes the Operator, directly or through third parties, to make any inquiries the Operator considers necessary to verify the User’s identity and/or other information.
4.3 Data Integrity
Authorized User assures that the Operator is informed with correct and full data, and must immediately inform the Operator about changes and confirm data updates with the Operator promptly. This pertains to the following details: all due diligence related information given during the on-boarding process, and all relevant data about retail customers of C.
In establishing C’s cashier page and uploading or adding any text, photo, or other material, Authorized User agrees that he/she will not (a) post misleading materials or misappropriate the identity of another person or entity, (b) post any copyrighted material which User is not authorized to post, or (c) post any profane, unlawful, or offensive materials. The Operator, at its sole discretion, may disable User’s cashier page and take other action in accordance with these T&Cs if the Operator believes User is in violation of the foregoing or is abusing this service.
4.4 Information Maintenance
The Operator is attentive in maintaining the security of the site and its services. By registering with us, Users agree to provide the Operator with current, accurate, and complete information as prompted by the registration process, and to keep such information updated. Users further agree that they will not access or use any account type (and/or profile type) other than their own at any time, or assist others in obtaining unauthorized access.
4.5 Authorized User’s Obligation
In addition to the obligations set forth elsewhere on this website and/or in the T&Cs, an Authorized User shall:
(a) At all times maintain all licenses, registrations, authorizations, and approvals required to operate its business, conduct all activities related thereto, and utilize the Operator’s services in connection therewith.
(b) Ensure that all aspects of its business, including all Authorized User activities, and the activity of any third-party engaged by C (e.g., Authorized Users, branches, vendors, affiliates, Ps, etc.), the goods and services on sale by C, and the acts or omissions of each Authorized User in connection with its use of the Operator’s services, comply with applicable law at all times.
(c) Promptly provide, and cause third parties under its control (e.g., Users, branches, vendors, affiliates, Ps, etc.) to promptly provide, such information as the Operator may request from time to time, such as its policies, procedures, and activities, any goods or services offered for sale and for which C may accept payment by use of the Operator’s services, or any transaction conducted through the use of the Operator’s services, to the extent the Operator deems such information reasonably necessary to comply with its policies or procedures, applicable law, an audit, or the guidance or direction of, or request from, any regulatory authority or financial institution.
(d) Within the Operator’s hosted cashier page, accurately identify the sale item in the item name field and provide an accurate and sufficient description of the same in the item description field.
(e) Authorized User will truthfully announce all offers, websites, devices, and purposes for which the implemented cashier system by the Operator is to be used, and register all essential changes.
(f) Authorized User is obliged to keep up with the local legal regulations of the respective jurisdiction where the offerings are provided. In particular, there are reverse transaction rules to be honored in accordance to applicable consumer protection laws. MC may use third-party payment systems and payment methods to issue refunds and payouts.
Failure to fulfill this obligation shows a considerable breach of T&Cs and may lead to the termination of related agreements, any kind of contractual relationship, or non-contractual relations, and access to the website.
4.6 Bitcoin Cashier: Use Cases & User Roles
For the avoidance of doubt, the use case and user roles of the Bitcoin Cashier System are set as follows: The Operator collects payments for goods and services from P for settlement and/or exchange of funds on behalf of MC.
In this context, the Operator provides money collection services to cash in funds (pending receivables) due from customers based on a service agreement between the collection company and the MC. The Operator acts as a collection company on behalf of a third-party (i.e., MC).
MC is the payee utilizing the Operator’s Bitcoin Cashier System to collect payments from their customers (Purchasers).
P pays for acquired goods and services of MC by sending cryptographic means of payment through the Bitcoin Cashier System of the Operator. P is NOT a customer or contracting party of the Operator. Therefore, the Lugano Convention/Swiss Federal Code on Private International Law (CPIL) is NOT applicable.
4.7 Bitcoin Cashier: Contractual Relationships
Authorized User will use the software and the assigned interface information exclusively for such purposes that are indicated in the Merchant Service Agreement (MSA) between the Operator and MC. The Operator’s services are provided exclusively for the use of MC. Therefore, MC must make it clear to any P that a) there is a separate sales agreement between MC and P (this applies to claims of P towards MC); b) there is an exclusive MSA between MC and the Operator; there is no contractual relationship between the Operator and P using the PP.
For the avoidance of doubt, MC receiving funds originating from selling goods and services is the payee. The Operator has a contractual agreement with MC for gateway services, collection of funds, currency exchange, clearing & settlement, data processing, reporting, and compliance services.
4.8 Purchaser Registration
P does NOT register with the Operator’s services. The Operator obtains purchaser data from MC.
5. Operational Conditions
5.1 Transaction Propagation
Once submitted to the Bitcoin network, a transaction will be unconfirmed for a period of time (usually less than one hour, at times up to one day or more). A transaction is not complete while it is in a pending state for sufficient block chain confirmations performed by third-party mining providers (miners). Cryptocurrency associated with transactions that are in a pending state will be designated accordingly, and will not be included in the account balance or be available to conduct transactions.
5.2 Goods Delivery
Authorized User acknowledges and agrees that the Operator has no control over, or liability for, the delivery, quality, safety, or any other aspect of any goods or services that C may sell to P using the Operator’s services. Each C is responsible for handling inquiries from P related to the goods and/or services it sells to P through the Operator’s services, except for inquiries related to payment for such goods or services, which will be handled by the Operator.
The Operator will clear the payments over the Bitcoin peer-to-peer payment network (over the blockchain) and post the balance to the CA (serves as off-chain accounting ledger for settlement with the Operator). The debits and credits to CA are funds temporarily held (during the necessary operational time period as agreed upon elsewhere on this website and/or in the T&Cs) by the Operator until settlement to C’s bank account or Bitcoin Wallet can take place.
5.4 Collection Report
An Authorized User’s collection report history is available through the CA. A detailed payment collection report from all the principal transactions and underlying orders (purchases of goods and services) is available for the sales statistics on which all turnovers are credited in real-time. Fees according to the pricelist are charged to the CA directly and fees are subtracted accordingly.
C can receive a settlement in fiat currency or in cryptocurrency.
Authorized User assumes volatility risks of the currency in which C chooses to settle.
If an Authorized User chooses to keep cryptocurrency, then C assumes the volatility risk of the Bitcoin value.
Settlements in cryptocurrency are transmitted to the Bitcoin Wallet on file (using the RMA of C). Therefore, C is assumed to maintain a Bitcoin Wallet on their own device or use an on-block chain solution (e.g., blockchain.com). Under certain conditions (in-line with AML/KYC-requirements), the Operator supports settlements to off-block chain Bitcoin Wallets provided by third-party operators (VASP), and on-block chain Bitcoin Wallets, which are self-administered and under the sole control of the Client.
Settlements in fiat currency occur by wire transfer (e.g., SEPA, ACH, and/or SWIFT). In certain circumstances, a number of intermediaries may be involved in an international payment, and they or the beneficiary bank may deduct charges. The Operator will make reasonable efforts to ensure such charges are disclosed to the Authorized User prior to sending the payment. Where they cannot be avoided, Authorized User acknowledges these charges cannot always be calculated in advance, and C agrees to be responsible for such charges.
Settlements to an Authorized User using cryptocurrency will generally take 1 (one) banking day or less, although exceptions may apply.
Settlement payments in fiat currency may take a few banking days but no longer than the time period specified elsewhere on this website and/or in the T&Cs (defined max. number of calendar days depending on volume, min. thresholds and min. withdrawal fees may apply).
Settlement thresholds are customizable and can be self-administered by C. The Operator will send a direct deposit to Authorized User’s bank account or Bitcoin Wallet to clear out Authorized User’s accumulated open balance as soon as it reaches the specified credit balance. The Operator shall transfer funds as soon as possible following Authorized User’s withdrawal request.
Settlement payments to C are carried out in accordance with industry standard billing periods and corresponding accounting cycles. The Operator follows professional standards as observed by registered Swiss collection service organizations. In general, settlements of open balances occur within the necessary operational time period, depending on the arrangement with Authorized User and the stipulated legal requirements in these T&Cs.
5.6 Settlement Report
On request, the Operator will provide Authorized User with a settlement report detailing the clearing and settlement history of the CA including all deductions. Should Authorized User identify an error in the settlement report, C must notify the Operator of such error within 1 (one) month. The period begins when the Operator has provided the appropriate details online.
5.7 Tiered Pricing
The Operator imposes monthly transaction limits on C taking total amounts and total number of payments into account. When Authorized User registers for CA, C will be required to select the transaction limit corresponding to C’s pricing plan (tiered pricing) that will apply, and to provide the Operator with the documentation necessary to qualify for that tier. If Authorized User’s business is a high-risk category, as determined by the Operator, C will be required to qualify for the Risk-based TNX Fee tier in order to use the services.
Transaction fees and processing charges for products and services depend on the business model, industry vertical, licensing status, transaction volume, geographical location, and risk category of the client. Client agrees to the broker fee, bank transfer fee, network fee, risk-based transaction fee, and other processing charges as per default settings (or customized settings) of the pricing plan displayed in CA.
5.8 Fee Deductions
The Operator’s claims for rendered services are charged against any due payments to the CA in accordance with a valid settlement schedule as specified elsewhere on this website and/or in the T&Cs.
5.9 Insufficient Funds
In case the balance shows no credit, or there are insufficient funds in the linked account to cover any amounts owed to the Operator hereunder, C authorizes the Operator to debit the CA. The Operator may resubmit debits or charges until all amounts owed by Authorized User to the Operator hereunder are satisfied in full. In the event of closed accounts, the Operator will issue an invoice for the services rendered, which is due immediately without other requirements. In case of late payments, the Operator is entitled to charge a commonly used interest rate for overdue invoices. The proof of higher damage is not excluded.
6.1 Safeguarding Credentials
Users are responsible for maintaining adequate security and control of any IDs, passwords, hints, personal identification numbers (Private-key details, PINs, TANs), or any other codes used to access the Operator’s services. Any loss or compromise of the foregoing information and/or the User’s personal information may result in unauthorized access to the CA by third parties and the loss or theft of any cryptocurrency and/or funds held.
The User is responsible for keeping the User’s email address and telephone number up to date in the User’s account or profile in order to receive any notices or alerts that the Operator may send to the User. The Operator assumes no responsibility for any loss that the User may sustain due to any compromise of the User’s sensitive information or failure to follow or act on any notices or alerts that the Operator may send to the User.
If suspicious activity is observed, monitored, or recorded, the Operator may, but is not obligated to, request additional information from Users, including authenticating documents, and freeze any transactions pending the Operator’s review. Users are obligated to comply with these security requests or accept termination of User`s access. Users are required to notify the Operator immediately of any unauthorized use of the User’s password, or any other breach of security in written form by email.
6.2 Safeguarding API Keys
The Operator may provide certain parties with access to specific data and information through the Operator’s API (Application Programming Interface). Users are free to use these in their original, unmodified, and unaltered state. Authorized User is responsible for maintaining adequate security and control of API tokens and/or API-keys.
Users also agree that the Operator shall be entitled, by giving notice and at its sole discretion and without giving any reason, to terminate the User’s access to the site, including and without limitation, the Operator’s right to: limit, suspend or terminate the service; prohibit access to the site and its content, services, and tools; delay or remove hosted content; and take technical and legal steps to keep Users off the site if the Operator assumes they are creating possible legal liabilities, infringing on the intellectual property rights of third parties, or acting inconsistently with the letter or spirit of these T&Cs.
Additionally, the Operator may, in appropriate circumstances and at its discretion, suspend or terminate user`s access for any reason, including and without limitation: (a) attempts to gain unauthorized access to the site or providing assistance to others attempting to do so, (b) perform malicious hacking or overcoming software security features limiting use of or protecting any content, (c) usage of the services to perform illegal activities such as money laundering, illegal gambling operations, financing terrorism, or other criminal activities, (d) failure to pay or fraudulent payment for transactions, (e) unexpected operational difficulties, or (f) upon the request of law enforcement or other government agencies, if deemed to be legitimate and compelling by the Operator, acting at its sole discretion, (g) the creation or use of any account type (and/or profile type) without obtaining the prior explicit permission from the Operator, (h) distribution of instructions, software, or tools for unauthorized purposes, (i) opening multiple account types (and/or profile types) for abusing the system, (j) copy or share the software source codes or the interface information, (k) to transfer the right to use the Operator’s system to unauthorized third parties for accepting cryptocurrency.
Termination is not the exclusive remedy for the violations described above, and the Operator may elect to take further action against such Users.
6.4 Insufficient Activity
The Operator reserves the right to deactivate Users of any account type (and/or profile type) if the users have been inactive for a period of 6 months or more, and/or to modify or discontinue the Operator’s site or services. Authorized User agrees that the Operator will not be liable to it or to any third-party for termination of their CA or access to the site.
7. Purchaser Profile
7.1 Scope of Services
A PP is held by a retail customer of C and is used to pay for goods and services. C bills amounts due and collects payments. P receives payment requests through the Operator`s Bitcoin Cashier System.
P does NOT maintain an account with the Operator. Instead, the Operator keeps a user profile of P on record, which tracks the purchasing and payment history, and informs P about the rights to privacy and related data protection laws.
P is free to upgrade the user profile to a CA by completing the on-boarding procedure in compliance with AML/KYC-requirements. If the upgrade is approved, P becomes a C and the user details are converted accordingly.
7.2 Payment Instructions
Users may initiate a cryptocurrency transaction by going to the website of the Operator, choosing to send or request, and entering the requisite information regarding the sender or recipient and the amount to be transferred. The Operator will then communicate with the Bitcoin network on user’s behalf, as necessary, to facilitate each cryptocurrency transaction in accordance with these instructions.
7.3 Payment Validity
The Operator processes cryptocurrency transactions according to the instructions received from C and their P. The Operator does not guarantee the validity of payment instructions that are associated with third parties. C and their P should verify all transaction information prior to submitting instructions to the Operator as the relevant Bitcoin transaction may not be cancelled or reversed once initiated.
There is no legal obligation to execute payment transactions immediately. This also applies if a delivery period or availability was stated when the corresponding order was placed. However, the Operator will do its best to inform User about different lead times should such apply.
7.4 Billing Support
In this context, the Operator provides Billing Support. Such services shall be performed through the Operator’s Billing Support web portal offering transaction look-ups to Users. It includes receiving and responding to billing inquiries and providing other electronic support services to P, including dispute resolution, and handling R-Transactions.
7.5 Post-Sales Customer Support
Authorized User must keep all records needed for fulfilling the merchandise to P and providing any post-sale customer support to P. If the sale of the item requires any government registration of the sale (e.g., banking and/or gaming licensing), C is responsible for such registration.
7.6 Dispute Resolution
Due to the nature of Bitcoin, any transaction conducted using the Operator’s services is final regardless of any defects in or non-delivery of any goods or services purchased in connection with such cryptocurrency transaction, or any other aspect of P’s transaction or relationship with the relevant C.
The Relevant User is advised to use adequate care because the Operator cannot reverse a Bitcoin transaction that has been communicated to and confirmed by the Bitcoin network.
If P experiences a problem with any goods or services purchased from C in connection with using the Operator’s services, or if P has a dispute with such C, P must handle it directly with that C. The Operator has no control over, or liability for, the delivery, quality, safety, or any other aspect of any goods or services that P may purchase from C.
If P believes C has behaved in a fraudulent, misleading, or inappropriate manner, or if P cannot adequately resolve a dispute with C, P may notify the Operator’s Support Team so that the Operator may consider whether to take any action.
7.7 Underlying Purchasing Agreement
The Operator is NOT responsible for the underlying purchasing agreement between P and C.
7.8 Consumer Protection
Complaints filed by P about a purchase will be forwarded to C for dispute resolution. If the Operator needs to conduct an investigation or resolve any pending dispute related to the relevant MCA, the Operator may restrict access to the site. The Operator reserves the right to terminate any MCA that receives excessive complaints and/or is in violation of Consumer Protection Law including the Distance Selling Act of the applicable jurisdiction.
8. Money Transfer Services
Financial transactions from and to third parties such as funds for investments, or refunds and payouts, qualify as a money transfer, and therefore require legal compliance with regulations for Anti-Money-Laundering (AML) and the related rules for Know-Your-Customer (KYC).
Users have to complete the on-boarding process if the transaction amount exceeds thresholds as per compliance tiers and transaction limits. AML-compliance may include uploading a copy of the passport to the Custody Wallet, filling out KYC-forms, providing supporting documentation, and conducting an online identification or video identification.
Money will be processed in crypto (or fiat) as soon as the Compliance Team has successfully verified and approved the details. This procedure ensures that the payment is received from the real contracting party, and is sent to the right beneficiary.
Disbursements from merchants to customers are debited from the CA of the payer and credited to the CA of the payee. Refunds or other payouts relate to customer transactions to settle open balances of merchants. Such B2C-payments are transferred through the E-Commerce cashier system.
The money represents consideration under a contract for the transfer of ownership of a cryptographic token; or under a service contract for purchasing goods and services; or as a security deposit.
9. Initial Offerings of Cryptographic Token
Money transfer services related to cryptographic token (i.e., ICO/ITO/IEO) require compliance pre-checks (e.g., filling of applicable questionnaire) and a legal opinion as outlined in the FAQs on this website.
10. Custody Wallet
The "Custody Wallet" is limited to an individual balance of up to CHF 500.00 per month and CHF 3,000.00 per year within the license-free innovation space ("Swiss Fintech Sandbox"). The Operator of this service is a licensed financial intermediary but restricted to accept deposits to a maximum total of CHF 1 million (as per Swiss Banking Law). This means that the liabilities towards clients or investors may not exceed CHF 1 million at any time. The user understands that the products and services offered as "Custody Wallet" are not subject to supervision by the Swiss Financial Market Supervisory Authority (FINMA) with regards to banking law, and deposits are not covered by the deposit protection scheme as per Swiss Banking Ordinance. As described in the Terms & Conditions of Moving Media GmbH DBA Payment21.com, the deposits are subject to an exemption clause related to the sandbox concept of FINMA, which regulates public deposits of non-banks operating innovative business models in the Fintech industry. Notwithstanding, the deposited funds are subject to oversight in terms of AML/KYC-compliance. The Operator of this service is regularly scrutinized by chartered accountants with regards to accounting and tax law. In addition, the Operator is a member of a regulatory organization and monitored by independent third parties. Certified auditors perform professional controls with regards to AML-KYC-rules and regulations on a periodic basis. As per legal requirements, a legal disclaimer notifies users that no supervision and no deposit insurance for public deposits are available.
11. Browser Extension
The Browser Extension (promoted as “LNP21”) relates to Bitcoin transactions over the Lightning Network and is based on the open source code provided by Joule and licensed under the MIT-license.
Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sub-license, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The copyright notice and the following permission notice shall be included in all copies or substantial portions of the Software:
THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANT-ABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES, OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF, OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
12. Order Execution
This order execution policy only applies to RCs dealing in Fiat/Crypto & Crypto/Crypto (i.e., permissible token and/or asset token and/or security token only if legally delegated by a financial institution and only if RC is recognized by the Financial Market Authority), where the Operator executes orders as agent or when it receives and transmits orders on such RC’s behalf.
The operator has established a legally non-mandatory order execution policy for the exchange of funds. This voluntary policy is implemented at the operational level to ensure that all sufficient steps are taken to obtain the best possible result (or "best execution") when executing orders on behalf of RCs.
12.2 Best Practice Standards
Best practice standards in terms of an AML/KYC-compliant on-boarding procedure stipulate a gradual process in terms of volume increase, and as a result transaction limits apply depending on the compliance tier and the number of transactions of the RC. The compliance status of the CA maintained by RC may have an impact on the execution of an order.
12.3 Commitment to Best Execution
When executing orders on an RC’s behalf, the Operator is committed to take sufficient steps to obtain the best execution on a best-effort-basis. The Operator will be executing orders “on an RC’s behalf” where the RC legitimately relies on the Operator to protect their interests in relation to the pricing or other aspects of the transaction that may be affected by how the Operator executes the order. For quote requests (i.e., provisional and fixed) and quotation services relative to the Fair-Value-Rate (FVR) the Operator has determined, through the four-fold-cumulative test, that the commitment of best execution is not owed.
12.4 Specific Instructions
Where an RC gives the Operator a specific instruction as to the execution of an order, the Operator will execute the order on a best effort basis but will not be in the position to guarantee all specific instructions of RC if they contradict operational requirements or commercial necessities. Where all elements of the order are deemed to be covered by a specific instruction of RC, but the Operator has no discretion as to any part of the execution of the order, the best execution obligation will not apply. The Operator will always use its expertise to employ the execution criteria set forth in this document, and should an RC instruction conflict with best execution or market practice, the Operator will use its discretion.
12.5 Electronic Access
Where an RC sends an order electronically to the Operator’s electronic systems for onward transmission, these will be executed with the specific RC’s instructions to the extent possible.
12.6 Execution Factors
The Operator considers best execution to be multifaceted, taking into account both quantitative and qualitative factors. The Operator will ascribe significance to the RC’s risk profile and the market’s data, utilizing its industry experience, expertise, and professional judgment with the prime aim of timely, fair and expeditious execution of exchange orders.
The following components are taken into account when executing RC orders to ensure the best possible result for RCs: Price, cost, size and nature of the order including the market impact (i.e., liquidity, volatility, volume fluctuations), the likelihood of execution and settlement, performance, speed, latency, algorithms, stability and reputation of the counterparties, and any other consideration relevant to the execution of the order such as technical restrictions of utilized electronic platforms, routing systems, and decentralized protocols.
To achieve the best possible execution results, the Operator will use one or more of the following types when executing orders on behalf of RCs: markets having regulated market (“RM”) status under MiFID, trading platforms having multilateral trading facility (“MTF”) status under MiFID, order crossing networks and electronic trading platforms not having RM or MTF status under MiFID (this may include trading platforms outside the EEA having equivalent status to MTFs), other liquidity providers (e.g., broker-dealers and market makers), and/or internal crossing destinations to cross orders between RCs.
The Operator will regularly assess the execution counterparties available in respect of exchange orders and identify those which it believes enables it to obtain the best possible result when executing orders.
The Operator reserves the right to use other execution counterparties where it deems it appropriate in accordance with this policy. Details of the counterparties typically used by the Operator are available on request.
12.7 Chain of Execution
Where the Operator passes an order to another counterparty for execution, the Operator remains under an obligation to observe the performance of the transaction and obtain the best possible result for its RC.
12.8 Aggregation of Orders
Comparable orders are executed sequentially and promptly, unless this is impractical given the characteristics of the order and market conditions. The Operator may combine orders with orders of other RCs. By combining orders with those of other RCs the Operator will only do so where it reasonably believes that this is unlikely to disadvantage any RC. Prior disclosure is therefore made in this policy that the effect of aggregation may work on occasion to an RC’s disadvantage. As such, aggregation may result in obtaining a less favorable price in relation to a particular order.
12.9 Material Difficulties, Volatile Markets, Extreme Situations
Should the Operator encounter material difficulties in the timely or complete execution of an order the Operator will inform the RC about difficultly in question within a reasonable amount of time, and make the RC aware that the order will not be executed in line with the reasonable expectations of the RC. The Operator reserves the right to refuse to deal if it is deemed impractical to do so.
In volatile markets an order may be executed at a substantially different price from the quoted best bid or offer (provisional price quotation versus fixed price and/or final price/cost) or the last reported exchange rate. Orders may only be partially executed or executed in several batches and at different prices. In extreme volatility situations, exchange systems may require systems to be switched off or suspended, which may lead to execution delays and increased market volatility.
12.10 Review and Demonstration of Best Execution
The Operator will regularly review effectiveness of execution arrangements and compliance with this policy, and notify RCs of any material changes. At the request of RCs, the Operator is required to demonstrate that it has executed orders in accordance with this policy. The total cost analysis and documentation regarding evidence about execution performance shall remain proprietary data of the Operator, and shall only be disclosed against a handling fee per transaction (i.e., the fee is at the discretion of the operator, RC must approve the amount in advance).
12.11 Best Execution Committee
The Operator has established a Best Execution Committee comprised of senior management, members of the OTC Trading Desk, and the Compliance Team. This task force meets on a regular basis to review execution quality. Other duties are to approve new counterparties and to discuss market structure updates, regulatory development, and legal changes that may affect execution decisions.
12.12 Identification of Conflicts of Interest
All employees are required to disclose personal conflicts of interest in-line with the Operator’s internal anti-corruption policy as published on this website. Any such conflicts are recorded and mitigating actions are taken by the persons in charge.
12.13 Managing Conflicts of Interest
The Operator ensures segregation of functions & duties as appropriate to avoid conflicts of interest wherever possible. These duties are set out via procedure manuals and organization charts. The Operator’s employees are supposed to act in the best interest of the RC and therefore disregard their own interests, relationships, or arrangements when advising or dealing on RC’s behalf. If arrangements to manage a conflict of interest are not sufficient to ensure with reasonable confidence that the risk of damage to that RC’s interests is prevented, the RC will be advised of the general nature and/or source of the conflict in such a way that an informed decision can be made by that RC before business is undertaken. To protect each RCs’ interests and prevent improper access to sensitive content and critical data, the Operator uses “Chinese Walls” which physically segregate different departments and restrict online access to specific systems in order to limit the flow of information.
13. Data Protection
13.1 Data Privacy
The Operator is committed to protecting the security of Users. At the Operator’s sites, the Operator attempts to use industry-standard security technologies when transferring and receiving User data exchanged within the Operator’s website.
The contracting parties (C and the Operator) commit themselves to absolute confidentiality concerning the terms of the underlying agreement, and agree to exercise discretion in regards to the technical, financial, operational, or other aspects of the contractual relationship.
13.4 E-Mail Campaigns
User may not initiate mass-mailing campaigns (mail actions) via email from their domain without having been specifically requested to do so by the recipients.
14.1 Bitcoin Specifics
Accepting cryptographic means of payment has special risks not generally shared with official currencies or goods or commodities in a market. Unlike most types of money such as legal currencies, which are backed by governments or other legal entities, or by commodities such as gold or silver, Bitcoin is a form of private money representing a unique medium of exchange (also specified as a unit of account or complementary currency) backed by technology and trust among Users. There is no central bank that can take corrective measures to protect the value of cryptocurrency in a crisis, or issue more currency.
Buying and selling of cryptographic means of payment may be susceptible to irrational (or rational) financial bubbles or loss of confidence, which could collapse demand relative to supply. For example, confidence might collapse in cryptocurrency because of unexpected changes imposed by the software developers or others, a government intervention, the creation of superior competing alternative crypto currency, or a deflationary or inflationary spiral. Confidence might also collapse because of technical problems such as the safety of the system if it is compromised due to privacy issues, if money is lost or stolen, or if hackers or regulators prevent any transactions from settling.
There may be additional risks that the Operator has not foreseen or identified in the Operator’s T&Cs. Any Authorized User should carefully assess whether their financial situation and tolerance for risk are suitable for accepting cryptocurrency from P.
14.2 Volatility Risk
While the Operator guarantees the exchange rate as long as P pays within such time window, Authorized User agrees to assume the volatility risk of fiat currency or Bitcoin, as applicable. For instance, if C asks the Operator to collect EUR 150, and P sends the payment within the time window, the Operator guarantees C will receive exactly EUR 150 in relation to the value of Bitcoin, minus the Operator’s fee, but does not guarantee the value of EUR.
14.3 Volume Fluctuations
In connection with any sale of Bitcoin to the Operator, the Operator will make good faith efforts to fulfill such sale orders at the applicable selling price quoted on the Operator’s site at the time that C places such an order. However, from time to time it may be necessary for the Operator to delay fulfillment of a sale order until the Operator is able to execute the transaction.
Trading crypto currency implies volume fluctuations on digital asset markets, and may occasionally induce liquidity shortages resulting in delayed execution of market orders. C accepts that the Operator cannot be held responsible for such delays.
14.4 Bitcoin Storage
The Operator may securely store all cryptocurrency in a combination of online (hot) and offline (cold) storage. An undisclosed amount of Bitcoin liquidity is stored with third-party exchange service providers. As a result, it may be necessary for the Operator to retrieve this information from offline storage or from third-parties in order to facilitate a Bitcoin transaction, which may delay the initiation or crediting of such cryptocurrency payments. C accepts the risk that a Bitcoin transaction facilitated by the Operator may be delayed, and agrees not to hold the Operator responsible for any damages or injury arising out of or related to such delay but acknowledges the security measures conducted by the Operator.
14.5 Banking Providers
The Operator uses financial institutions to receive C monies, and for making settlement payments. The Operator’s banking providers DO NOT transfer cryptographic means of payment, exchange cryptographic means of payment, or provide any services in connection with cryptographic means of payment.
Third-party exchange service provider: Authorized organizations (including but not limited to licensed payments institutions, e-money institutions, money service businesses, money transfer companies, regulated financial institutions, security dealers, stock exchange providers, etc.) operating alternative trading platforms and multilateral trading facilities (MTF) for trading of cryptographic means of payments against fiat currency denominated in CHF, EUR, or other foreign currency. The Operator performs proprietary trading on platforms made available by third-party exchange service providers.
14.6 Financial Advice
For the avoidance of doubt, the Operator does not provide any investment advice in connection with the services addressed by these T&Cs. The Operator may provide information on the price, range, volatility of cryptocurrency, and events affecting the price. This is not considered investment advice and should not be construed as such. Any decision to purchase or sell cryptocurrency is the User’s decision and the Operator will not be liable for any loss suffered.
15. Compliance with Law
15.1 Operator’s Regulatory Status
The Operator is a registered financial intermediary operating as an exchange office (OTC-Broker/Bureau de Change) and money transmitter, and therefore subject to a cascade of controls. In addition to the regular audits by the authorities (relative to capital gains tax, value added tax, social security, etc.), the Operator is periodically reviewed by independent auditors for accounting and taxation. Additionally, to combat money laundering, the Operator is scrutinized on multiple levels by internal and external compliance offices and approved third-party auditors. Moreover, the Operator is subject to material checks by a recognized regulatory organization, which in turn is overseen by the financial market supervisory authority.
15.2 Legal Basis
The legal basis for the operation of all account types and/or profile types shall be the Swiss Code of Obligations (including the freedom of contract), the Swiss Banking Act (SFBA including but not limited to and subsequent legislations), the Anti-Money Laundering Act (AMLA), and the Swiss provisions for financial intermediaries and regulatory organizations, including the Stipulations and Ordinances of the Swiss Financial Market Supervisory Authority (FINMA).
The Operator shall perform AML/KYC-profiling on all Users on a voluntary basis. For this purpose, the Operator will utilize feedback received from the Operator’s staff or monitoring systems. The Operator utilizes manual and automatic transaction monitoring tools such as the Verification Loop™, Mitigation Monitor™, Dynamic Delivery Authorization System for Cryptographic Payments (patent pending), and AML/KYC Profiler™ to oversee incoming and outgoing transactions.
The purpose of the transactions is identified through Merchant Category Coding (MCC). Transactions qualifying for money collection (purchase transactions for goods and service) are distinguished from money transmitting; hence, different verification procedures are automatically applied.
If applicable law requires a retail customer of a merchant’s identity to be verified, C must adequately verify the user’s identity or qualifications and forward the relevant details to the Operator for AML-compliance and KYC-legitimacy. The Operator will then apply AML/KYC-procedures as required by its jurisdiction.
The Operator performs AML/KYC-procedures on each C on an obligatory basis.
Clients are responsible and liable to provide valid and correct information and documents to the Operator.
15.4 Bitcoin Regulation
Crypto currency frameworks are partially regulated networks of regulated and non-regulated entities and individuals (e.g., Bitcoin community). Users put their trust in a digital, decentralized, autonomous system that relies on peer-to-peer networking and cryptography to maintain its integrity.
Without limiting the foregoing, User may not acquire any of the Operator’s services through the Operator’s site if: (a) User is a national or resident or entity of the countries banned by Swiss SECO, or any other relevant embargo or sanctions lists; (b) User is a national or resident of the countries classified as high-risk and non-cooperative jurisdictions by the Financial Action Task Force (FATF).
The Operator reserves the right to refuse to process, or to cancel or reverse, any cryptocurrency payments to or from the Operator at its sole discretion, if the Operator suspects the transaction involves (or has a high risk of involvement in) money laundering, terrorist financing, fraud, or any other type of financial crime, or if the Operator suspects the transaction relates to a restricted activity in accordance with the Operator’s List of Excessive-Risk Countries and/or List of Excessive-Risk Industries (contact us for more details).
15.6 Assets Block
In the event that the Operator is required to block assets associated with the CA in accordance with a sanctions program, the Operator may (a) deactivate or cancel the CA or block User activity, (b) reject funds transfers or block funds; (c) transfer cryptocurrency to an originating source or to an account specified by authorities, or (d) require Authorized User to withdraw funds within a certain period of time. The Operator is not responsible for any losses, whether direct or indirect, that the User may incur as a result of the Operator complying with applicable law, the guidance, or direction of any regulatory authority or government agency, or any writ of attachment, lien, levy, subpoena, warrant, or other legal order.
Authorized User is solely responsible for the proper taxation of all income. This also applies to the value added tax calculated by C, as well as import and export duties in relation to the goods and services sold by C. All information that the Operator makes available to the User in relation to the value added tax refers exclusively to information received by C. Authorized User has the sole duty for the registration of the asserted tax.
16.2 Value Added Tax, VAT
The considerations describing consulting and engineering services rendered for domestic business relationships are subject to VAT in Switzerland.
The fee calculation for business relationships outside of Switzerland is tax-free.
16.3 Taxation of Financial Transactions
Financial transactions do not incur VAT in Switzerland, hence, there is no VAT applied to the fees charged by the Operator.
16.4 Taxation of Bitcoin Transactions
It is the User’s sole responsibility to determine whether, and to what extent, any taxes apply to any transactions associated with the Bitcoin transactions the User conducts through the Operator’s services, and to withhold, collect, report, and remit the correct amounts of taxes to the appropriate tax authorities. The User transaction history is available through the website of the Operator.
The Operator does not adhere to the insolvency or unwillingness-to-pay by the User. This disclaimer of liability refers to all money, fees, substitutes, and other demands that are asserted by the User.
To the extent permitted by law, the Operator will, under no circumstances, be liable for any damages, losses, or liabilities, including without limitation, direct or indirect, incidental or consequential damages, losses, or liabilities, in connection with the usage of the Operator's site or the User’s reliance on or use or inability to use the information, materials, products, services, or functionality on this site, or in connection with any failure of performance, error, omission, interruption, defect, delays in operation or transmission, computer virus or line or system failure, even if the Operator is advised of the possibility of such damages, losses, or expenses.
The Operator does not take any responsibility regarding the Bitcoin Network and does not endorse Bitcoin in any way whatsoever. The use of Bitcoin is at the client’s own risks. If user enters wrong information leading to loss of funds, user has no right to make any claim for compensation. Any consulting and research related to such incidents prompts additional charges to be paid to the Operator.
Regardless of the reasons a liability is considered, this is limited only to the availability of the respective offer. Further claims that arise from the original claim are also excluded.
Subject to the foregoing, the Operator's aggregate liability with respect to claims based on events arising out of or in connection with any single User, whether in contract or tort (including negligence) or otherwise, shall in no circumstances exceed the greater of either of the following: (a) the total amount held for the User making a claim less any amount of fees that may be due and payable; or (b) the amount of the transactions that are the subject of the claim less any amount of fees that may be due and payable with respect to such transactions.
To the extent permitted by applicable law, Users hereby agree to indemnify the Operator and its partners against any action, liability, cost, claim, loss, damage, proceeding, or expense suffered or incurred directly or indirectly from the usage of the Operator's site.
17.4 Force Majeure
If the Operator is unable to perform the services outlined in the T&Cs due to factors beyond the Operator’s control, including but not limited to an event of Force Majeure, change of law, or change in sanctions policy, the Operator will not have any liability to Users with respect to the services provided under these T&Cs and for a time period coincident with the event.
The information and material contained in this site, including text, graphics, links, and other items are provided as is and as available. The Operator does not warrant the accuracy, adequacy, or completeness of this information and material and expressly disclaims liability for errors or omissions in this information and material. No warranty of any kind, implied, expressed, or statutory, including but not limited to the warranties of non-infringement of third-party rights, title, merchantability, fitness for a particular purpose and freedom from computer virus, is given in conjunction with the information and material on this site, particularly with regard to investment decisions. Users must independently verify the accuracy of all such information and material before acting, relying thereon, or making investment decisions in connection therewith.
By using the Operator’s services, the User agrees that the Operator may provide the User with any notices or other communications about the User’s activity and the Operator’s services electronically: (a) via email (in each case to the address the User provides), SMS message, or telephone call (in each case to the phone number the User provides), or (b) by posting to the Operator’s site. For notices made by email, the date of receipt will be deemed the date on which such notice is transmitted. If the User does not wish to receive notices or other communications electronically, the Operator will be unable to support the User and will deactivate any associated data.
17.7 Availability of Links, Products and Services
The Operator gives no guarantee of the availability of the products and services. Any liability, no matter what kind or for which legal argument, is excluded. The same situation applies for interruptions of the data transfer, failure, or partial failure of the systems and loss of data regardless of the reasons for its occurrence. The disclaimer of liability also applies to all employees and fulfillment assistants of the Operator. The Operator is not responsible for the availability of any other site to which any of the Operator's sites link. The Operator does not endorse or take responsibility for the content, advertising, products or other materials made available through any other site.
Authorized User is solely responsible for obtaining any information required of those who purchase its goods or services. C may only provide services that do not offend common ethical standards, human dignity, and third-party rights (brands, names, originators, data protection rights, etc.). Authorized User is required in each case to provide data protection under applicable local regulations and to make sure that underage-prohibited content is only accessible to persons over 18 years of age. The Operator is entitled to reverse transactions in cases where legal rights are offended.
18. Intellectual Property
18.1 Restrictions on Use of Materials
The content of this site and any other Operator's site is protected by copyright and trademark laws, and is the property of the Operator. Materials located within the Operator's site may be accessed only for the User’s business use. Users agree not to sell, license, rent, modify, distribute, copy, reproduce, transmit, publicly display, publish, adapt, edit, or create works from such materials or content or in any way exploit the material or content of the Operator's site. This means Users may download copies of posted materials for business use only, so long as Users neither change nor delete any author attribution, trademark, legend, copyright, or other proprietary notice. When Users download copyrighted and/or patented material, Users do not obtain any ownership of rights in that material.
19.1 Acceptance of T&Cs
When using the Operator's site, Users are deemed to have agreed to all the terms, conditions, use, and notices contained or referenced herein. The Operator reserves the right, at its discretion, to update or revise the T&Cs. Users should check these T&Cs periodically for changes. By opening a CA to use the services, or by utilizing a PP, Users expressly represent and warrant the following: (a) Users have accepted these T&Cs; and (b) Users are at least 18 years of age and have the full capacity to accept these T&Cs and enter into a transaction.
19.2 Partial Validity
If any provision of these T&Cs is determined to be wholly or partially not legally effective or not feasible or loses its legal validity or enforceability later, this shall not affect the validity of the remaining provisions. The same applies if it should turn out that the T&Cs include a loophole. Instead of the invalid or unenforceable provision or to fill the regulatory gap, a reasonable legal possible provision is to be found, which comes closest to what the parties intended or would have intended in meaning or purpose of the T&Cs if they had considered the matter at the time or at the time of a later insertion of a provision.
The T&Cs shall be governed and construed in accordance with Swiss Law. User agrees to irrevocably submit to the exclusive jurisdiction of the Swiss Courts. Legal venue for all disputes resulting from this arrangement is in St. Gallen (SG), Switzerland.
If Users have any questions relating to these T&Cs, the User’s rights and obligations arising from these T&Cs, and/or User’s use of the site and the services, or any other matter, please contact the Operator.
Effective Date: 1st of January, 2020