Explanations on Our Services
Customers must engage in transactions at their own judgment and responsibility after carefully reading the explanations below, fully understanding the services provided by Fisco Cryptocurrency Exchange Inc. (“us” or the “Company”), and accepting the content thereof without any objection.
《Explanation to the effect that the virtual currencies handled are neither Japanese currency nor foreign currency》
Information to the effect that the virtual currencies handled are neither Japanese currency nor foreign currency
The virtual currencies we handle are neither Japanese currency nor foreign currency. The value of the virtual currencies traded on our site is not guaranteed by any third party.
《Explanation on important matters》
Trade name and address of virtual currency exchange service provider
- 〈Trade name〉
Fisco Cryptocurrency Exchange Inc.
2-8-15, Araki-cho, Kishiwada-shi, Osaka
Information to the effect that the Company is a virtual currency exchange service provider and the registration number thereof
The Company is a company deemed to be a virtual currency exchange service provider under Article 8 of the Supplementary Provisions of the Act for the Partial Revision of the Banking Act, etc. to Address Advances in Information Technology and Other Changes.
Details of transactions
- (i) Sale and purchase of virtual currencies and exchange for other virtual currencies;
- (ii) Intermediation for the acts listed in item (i); and
- (iii) Management of customers’ fiat currencies or virtual currencies in connection with the acts listed in items (i) and (ii) above.
Outline of virtual currencies handled
As described in Exhibit 「“Outline of Virtual Currencies Handled.”」
If a loss might be incurred that will be directly caused by fluctuations in the value of a virtual currency handled, then information to that effect and the reason for the loss
- 〈Risk of fluctuations in value〉
Virtual currencies are not legal currency such as Japanese currency or foreign currency and do not have legal currency as an underlying asset. The value of virtual currency fluctuates all the time.
The value of the virtual currencies may be affected by trends in other markets such as commodities, currencies, and securities markets, or by natural disaster, war, political upheaval, strikes, increased regulation, the spread of other similar virtual currencies, or any other unexpected or extraordinary event that occurs in the future. Therefore, the value of the virtual currencies you hold or the value of your transactions involving virtual currencies may fluctuate rapidly or decline. Please also be aware that the value of the virtual currencies may fall below the purchase price or may drop to zero.
Other than the event under the previous item, if a loss might be incurred that will be directly caused by a material event that will influence the judgment of users with respect to the transaction, then information to that effect and the reason for the loss
- 〈Features of virtual currencies and system risk〉
Virtual currencies are an electrically recorded proprietary value that is transferred through the Internet. Customers execute transactions using an electronic transaction system.
If the electronic transaction system suffers a cyberattack and a customer’s information such as the login ID and password used for electronic verification is leaked due to a theft or intrusion, etc. and the information is fraudulently used by a third party, it may result in the disappearance of, or decline in the value of, the virtual currencies, and the relevant customer may suffer losses.
If a customer incorrectly enters an order, the customer’s intended order may not be executed, or an unintended order may be executed. The electronic transaction system may be unusable temporarily or for a certain period for many reasons, such as malfunctioning telecommunications or system equipment, or telecommunication network problems at the Company or a customer, or an order may be invalidated if a customer’s instructions for placing an order arrive late (or not at all) to the Company’s system. In addition, a customer’s ability to transact may be suspended in some cases whenever there is an electronic transaction system failure.
There is a risk that a system failure may occur due to changes to the external environment, etc., and this may disrupt a customer’s ability to execute transactions. A “system failure” is when the Company finds that a malfunction (not including obstructed network lines or problems with a customer’s computer, etc.) has clearly arisen in the system required to provide the Company’s services, and customers are no longer able to place orders over the Internet (the Company’s website, mobile site, or applications) or customers’ orders arrive late or cannot be placed.
In the event that a customer loses any opportunity (e.g., the Company is unable to receive a customer’s order and the customer therefore loses the opportunity to place the order, losing profits that he or she ordinarily would have earned) due to emergency system maintenance or a system failure, the Company will not be able to execute a process to fix the error because it will be unable to identify the order details that the customer intended to place (the original order).
The system may produce an aberrant value for the buy or sell price of virtual currencies calculated by the system. If the Company finds that a transaction took effect based on an aberrant value, the Company may cancel the transaction.
- 〈Risks due to virtual currency networks〉
When a virtual currency transaction is executed, the transaction will not take effect and will be on hold for a certain period until sufficient transaction confirmation (block chain transaction verification) is completed.
Therefore, customers may suffer losses due to fluctuations in the market value by the time the verification is completed.
In addition, it is possible that your transaction will not be reflected in your account balance, the transfer of virtual currencies may not be completed, or your transaction may be canceled, before sufficient confirmation of the transaction is made in the virtual currency network.
Furthermore, virtual currencies may be deleted because they are recorded electronically and their transfer is executed over a network.
- 〈Liquidity risk〉
may be impossible or difficult to execute, or you may be forced to execute it at a very unfavorable price.
- 〈Risk of having no settlement finality〉
Because the virtual currencies do not involve any system that can determine that a transaction has been definitively executed, there is a risk that a transaction may be invalidated retrospectively.
- 〈Risk of split due to hard forks〉
Depending on the type of virtual currency, there is a risk that a virtual currency may split into two or more chains that cease to be mutually compatible with one another. In that case, there is a risk of a significant fall in value or retrospective invalidation of transactions.
- 〈Risk of suffering a 51% attack〉
Depending on the type of the virtual currency, there is a risk that unauthorized transactions may be executed if 51% or more of the total number of issued virtual currency coins come to be held by a user other than the Company who has malicious intent.
- For other risks specific to each type of virtual currency, please refer to “Intrinsic Risks of the Program” in Exhibit “Outline of Virtual Currencies Handled.”
- 〈Business hours risk and risks relating to fees, etc.〉
The value of the virtual currencies may in some cases fluctuate widely when the Company is not open for business (including when we are performing maintenance). The Company bears no liability whatsoever if you are unable to execute a virtual currency transaction outside of business hours.
The Company may amend its rules, etc. on transactions. In particular, the Company may change its fees (including the fee rates), the required margin, or the stop order rate, etc. depending on the situation. If these rule changes are made, your burden may increase, extra funds may be required, and the chances of being subject to a stop-out may increase.
- 〈Bankruptcy risk〉
The Company may not be able to continue its business if the external environment changes (including more stringent regulations regarding virtual currencies), the Company’s financial condition deteriorates, or a service provider, etc. retained to provide systems or other necessary services to the Company goes bankrupt, etc.
If the Company is no longer able to operate its business, it will carry out procedures under the Bankruptcy Act, the Civil Rehabilitation Act, the Corporate Reorganization Act, the Companies Act, and other applicable laws and regulations, including matters with respect to customer assets.
The Company may receive deposits of fiat currencies or virtual currencies from customers, but the assets deposited from customers will be managed separately from the Company’s own assets. However, if the Company goes bankrupt, the Company will not be able to return customer assets, and customers may suffer losses.
- 〈Risks due to changes to legislation and the tax code〉
Many changes are taking place now regarding the laws, regulations, and tax code in relation to virtual currencies applicable to individuals who execute virtual currency transactions. In the future, virtual currencies may be banned, restricted, or subject to more onerous taxation, etc. and holding or trading virtual currencies may be restricted or treated less favorably than it is now due to changes to laws, regulations, the tax code, or government policy, etc. In that case, customers may suffer unexpected losses.
Please consult with your tax adviser, certified public tax accountant, lawyer, or other professional for details.
- The above description is only a summary of typical risks relating to virtual currency transactions and does not provide an exhaustive list of all the risks associated therewith.
Name, trade name, or company name of the person concerning segregated management
- 〈Deposit bank, etc. that manages fiat currencies〉
SBI Sumishin Net Bank, Ltd.
- 〈Manager of virtual currencies〉
Fisco Cryptocurrency Exchange Inc.
Information to the effect that, as a system for protecting users, obligations to manage the fiat currencies and virtual currencies deposited by users separately from the service provider’s own assets have been established, and the segregated management methods for fiat currencies and virtual currencies deposited by users
- 〈Segregated management obligations〉
As a system for protecting our customers, the Company is obliged by laws and regulations to manage the fiat currencies and virtual currencies deposited by customers with the Company separately from the Company’s own assets.
- 〈Segregated management methods〉
The Company shall, in accordance with Item 1, Paragraph 1 and Item 1, Paragraph 2 of Article 20 of the Cabinet Office Ordinance concerning Virtual Currency Exchange Service Providers, manage the fiat currencies and virtual currencies deposited from customers separately from the Company’s own assets.
With respect to the management of the virtual currencies deposited by customers, the secret key, etc. required for the management or disposal of the virtual currencies will be managed in an environment that is not connected to the Internet to the extent that does not cause inconvenience, etc. for the customers.
The amount of processing charges, fees, or expenses to be paid by users or the cap amount or method for calculating the amount of the cap amount
- As described on the website (“Fees”) at https://zaif.jp/fee
Location and contact details of the place of business at which complaints and inquiries from users are handled
- 〈Location of place of business〉
2-8-15, Araki-cho, Kishiwada-shi, Osaka
If a transaction is conducted with an amount displayed in a foreign currency, then the amount after conversion into Japanese currency and the standard used to conduct that conversion or the method used to calculate this amount
Details of complaint processing and dispute resolution measures
- 〈Complaint processing measures〉
The Company has established an internal operational system sufficient to provide fair and appropriate performance of the services relating to complaint processing as complaint processing measures pursuant to Item 2, Paragraph 1 and Paragraph 4 of Article 63-12 of the Payment Services Act. We will respond sincerely to any complaint or inquiry relating to our virtual currency exchange services as follows, in accordance with the method prescribed in our prescribed regulations.
- Complaints, etc. relating to our virtual currency exchange services may be filed by the customer as well as by any heir or agent of the customer.
- A customer may submit a complaint, etc. relating to our virtual currency exchange services with our Zaif Support Desk. Even if it is unclear whether the complaint, etc. relates to our virtual currency exchange services, we will respond sincerely.
- If appropriate in light of the content of the complaint, etc., our Operation Division will report it to the Representative Director and the Board of Directors of the Company and take appropriate action.
- Our Operation Division will promptly report the status of the Division’s response to the complaint, etc. to the Representative Director and the Board of Directors of the Company, and if necessary, the Representative Director and the Board of Directors will order our Internal Management Division to conduct an investigation, and based on the results of such investigation, will take countermeasures that are necessary to prevent recurrence.
- If necessary, our Internal Management Division will verify the status of the Company’s response to the complaint, etc., and will review matters such as the organizations and systems of the Company.
- If appropriate in light of the nature of the complaint, etc., our Finance and Accounting Division will introduce the customer to a dispute resolution support organization.
- 〈Dispute resolution measures〉
The Company will use the Tokyo Bar Association Dispute Resolution Center, the Daiichi Tokyo Bar Association Arbitration Center, and the Daini Tokyo Bar Association Arbitration Center, each of which the Company has executed an agreement with, as dispute resolution measures pursuant to Item 2, Paragraph 1 and Paragraph 5 of Article 63-12 of the Payment Services Act. Contact details of each dispute resolution center are as follows:
- The Tokyo Bar Association Dispute Resolution Center
- Tel: (+81) 03-3581-0031
- The Daiichi Tokyo Bar Association Arbitration Center
- Tel: (+81) 03-3595-8588
- The Daini Tokyo Bar Association Arbitration Center
- Tel: (+81) 03-3581-2249
- 〈System diagram〉
If stipulated, the period of the agreement
The period of the agreement relating to the use of the services provided by the Company will be for one year from the date on which the customer’s registration is completed during the period of provision of the services by the Company; provided, however, that the agreement will automatically be renewed for another one year if neither of the parties expresses any objection thereto one month prior to the expiration date, and the same will apply thereafter.
Handling when an agreement is cancelled (including how to calculate processing charges, fees, and expenses)
With respect to the balance of a customer’s account at the time of cancellation, the Company will refund fiat currency to the bank account designated by the customer or remit the virtual currencies to outside parties, in accordance with the method prescribed by the Company; provided, however, that any virtual currencies which may be difficult to return to the customer in their original condition will be converted into cash and the sale proceeds therefrom will be returned to the customer, in accordance with the method prescribed by the Company.
Any fiat currency (including the sales proceeds above) which is difficult to be refunded to the customer will be, based on the Company’s discretion, refunded by remittance via registered mail, deposit, or by any other method deemed appropriate by the Company.
Other matters of reference related to the details of the agreement
- 〈Method of depositing fiat currencies and virtual currencies〉
Customer deposits must be made in Japanese yen. Fiat currency must be deposited into our designated bank account by wire transfer or by other means designated by the Company. Deposited fiat currency will be reflected in the customer’s user account once we confirm deposit; accordingly, please be aware that it may take time for the procedures completed by the customer to be reflected in user accounts.
When depositing virtual currencies in a user account, customers must transfer the virtual currencies to the address designated by the Company. Virtual currencies transferred to the address designated by the Company will be reflected in the customer’s user account once we confirm the transfer during our business hours; accordingly, please be aware that it may take time for the transfers to be reflected in user accounts.
- 〈Method for confirming the status of fiat currencies and virtual currencies deposited with us〉
The status of the deposited fiat currencies and virtual currencies can be confirmed on the My Account page displayed on the upper right side of the screen that is displayed when you log in to your user account.
The Company also reports the information such as your transaction records and the fiat currencies and virtual currencies managed by the Company in a report prescribed by the Company.
- 〈Secret code number settings and other matters relating to security〉
Other than verification by entering a login password, customers may use two-factor authentication by using a mobile phone installed with a verification app that is used for generating one-time passwords.