{"_id":"5bda8cc499ee6100c9e59f84","project":"59f79e3c584eb200345ceafc","version":{"_id":"5ba178b00a916500030c6a21","project":"59f79e3c584eb200345ceafc","__v":24,"forked_from":"59f79e3c584eb200345ceaff","createdAt":"2015-09-17T03:47:20.956Z","releaseDate":"2015-09-17T03:47:20.956Z","categories":["5ba178b00a916500030c69a2","5ba178b00a916500030c69a3","5ba178b00a916500030c69a4","5ba178b00a916500030c69a5","5ba178b00a916500030c69a6","5ba178b00a916500030c69a7","5ba178b00a916500030c69a8","5ba178b00a916500030c69a9","5ba178b00a916500030c69aa","5ba178b00a916500030c69ab","5ba178b00a916500030c69ac","5afb6888212c690003ae3d3b","5ba178b00a916500030c69ad","5ba178b00a916500030c69ae","5ba2dcbc99f53f0003b97e2c","5babd73fa0ab3e0003ead030","5bb4038be7222e000334dd97","5bb55954478c1300031a44c2","5bb665a1607307000327c81e","5bb6f90229a7fb0003a0650d","5bb7f9bc29a7fb0003a07ac1","5bba58bd7ba7710003bd901d","5bba6dac7ba7710003bd908d","5bba6e257ba7710003bd9090","5bbac87810189c0003e619ea","5bbb9d02b5862c00036266b2","5bbbadb6219c3e000376c2de","5bc417751d1b0000182bf7f6","5bc59e3b2a5b4f0044db5b97","5bc7bbce2262cc0041f6eff2","5bce6a3580a7250031199f34","5bcfac2c4082510019f2d91b","5bcfac3757bed90030e45d68","5bcfac45d305bc0049941539","5bd2a43548bb6f00289c8fad","5bd3a42a026ebe001f66259e","5bd9d5afffe003005b02f97b","5becb7ee85c6b300557662b6"],"is_deprecated":false,"is_hidden":false,"is_beta":true,"is_stable":false,"codename":"","version_clean":"3.2.0","version":"3.2"},"category":{"_id":"5bb7f9bc29a7fb0003a07ac1","project":"59f79e3c584eb200345ceafc","version":"5ba178b00a916500030c6a21","__v":0,"sync":{"url":"","isSync":false},"reference":false,"createdAt":"2018-10-05T23:54:36.106Z","from_sync":false,"order":14,"slug":"cryptocurrency-wallet","title":"Crypto Wallet"},"user":"5bbfeeea7f922a0003f04c65","__v":0,"parentDoc":null,"updates":[],"next":{"pages":[],"description":""},"createdAt":"2018-11-01T05:19:00.633Z","link_external":false,"link_url":"","sync_unique":"","hidden":false,"api":{"results":{"codes":[]},"settings":"","auth":"required","params":[],"url":""},"isReference":false,"order":7,"body":"##FINRA Guidance as Best Practice\nNo Platform may make any false, exaggerated, unwarranted, promissory or misleading statements or claims in any communications and should not publish, circulate or distribute any communication that the Platform knows or has reason to know contains any untrue statement of a material fact or is otherwise false or misleading.\nPlatforms must ensure that disclosure, marketing, or advertising statements are clear and not misleading within the context in which they are made, and that they provide balanced treatment of risks and potential benefits. Communications must be consistent with the risks of fluctuating prices and the uncertainty of rates of return.\nPlatforms must consider the nature of the audience to which the communication will be directed and must provide details and explanations appropriate to the audience\nCommunications may not predict or project performance, imply that past performance will recur or make any exaggerated or unwarranted claim, opinion or forecast.\n\n##Upon opening a digital currency wallet\nWhen a user creates a digital currency wallet, they must agree to Evolve Bank & Trust's Digital Currency Custody Account Agreement, with the following verbiage:\n“The bank services are provided by Evolve Bank & Trust, Member FDIC. By opening Digital Currency Wallet on <Insert Platform Name>, you agree to Evolve Bank & Trust’s Digital Currency Custody Account Agreement.”\n\n*“Digital Currency Custody Account Agreement” ­must be a hyperlink to the Platform’s custom agreement, provided by SynapseFI. *\n\n##Within your Terms of Service\nIn compliance with UDAAP law, Platforms will be required to disclose information regarding the terms of service. The following must be disclosed prior to account opening:\n* Any fees associated with services, including network fees\n* Any income generated from the exchange spread, if applicable \n* Whether the provider offers custodial or noncustodial accounts\n* It should be made clear who will maintain control of the funds and private keys\n* Any eligibility requirements/restrictions\n\n##Disclosure of Risk\nThe Platform must be transparent regarding the risk of trading cryptocurrencies applicable to their services. The following disclosures must be provided to users, in a clear and conspicuous manner. \n*“Trading cryptocurrencies involves risk, and there is the potential of losing funds. Additionally, cryptocurrencies:*\n** Are not FDIC Insured, or insured by any other federal agency*\n** Are not deposits of or guaranteed by a bank*\n** May lose value*\n** Return on investment is not guaranteed”*\n\n##Service Provider Disclosure\nThe Platform must clarify which entities will be providing specific services. The following disclosure must be made clear to the Users and included within an FAQ page, or other similar resource, which is easy to locate.  \n\n*“Digital currency will be held in digital wallets in the custody of Evolve Bank & Trust, on your behalf. Evolve Bank & Trust may contract with third parties to provide wallet services as well as conversion functionality.”*\n\nThe Platform must disclose the following information regarding funds availability in relation to digital currency, and ensure Users understand that large transactions may not be processed immediately if they exceed the amount of that particular digital currency stored online at the time of the transaction. \n\n*“In order to keep funds within a digital wallet secure, a portion of the funds will be stored offline. Because of this, unusually large transactions may be delayed.”*\n\n\n##Non-Adviser Disclaimer\nFor cryptocurrency exchange platforms, language similar to the following must be included on the Terms of Service page as well as the FAQ page: \n\n*“<Platform Name> is not acting and cannot act as an advisor, including as to any financial, legal, investment, insurance and/or tax matters. Any information provided by <Platform Name> is for general information only. Any decision to purchase or sell digital currency is solely your decision and we shall not be liable for any loss suffered.” *\n\n##Capital Gains Reporting\nFor any platform using our BTC-US Node, the following clause will be included in the Terms of Service and should be added to the FAQ page as well. \n \n*“The value of any capital gains related to buying and selling cryptocurrency may constitute taxable income. Synapse Financial Technologies will issue an Internal Revenue Service Form 1040 Schedule D (or other appropriate form) to you that reflects the value of the gain, if necessary. Please consult your tax advisor. SynapseFI and its affiliates and associates do not provide tax advice.”*","excerpt":"Legal disclosures for the cryto wallet","slug":"legal-disclosures-12","type":"basic","title":"Legal Disclosures"}

Legal Disclosures

Legal disclosures for the cryto wallet

##FINRA Guidance as Best Practice No Platform may make any false, exaggerated, unwarranted, promissory or misleading statements or claims in any communications and should not publish, circulate or distribute any communication that the Platform knows or has reason to know contains any untrue statement of a material fact or is otherwise false or misleading. Platforms must ensure that disclosure, marketing, or advertising statements are clear and not misleading within the context in which they are made, and that they provide balanced treatment of risks and potential benefits. Communications must be consistent with the risks of fluctuating prices and the uncertainty of rates of return. Platforms must consider the nature of the audience to which the communication will be directed and must provide details and explanations appropriate to the audience Communications may not predict or project performance, imply that past performance will recur or make any exaggerated or unwarranted claim, opinion or forecast. ##Upon opening a digital currency wallet When a user creates a digital currency wallet, they must agree to Evolve Bank & Trust's Digital Currency Custody Account Agreement, with the following verbiage: “The bank services are provided by Evolve Bank & Trust, Member FDIC. By opening Digital Currency Wallet on <Insert Platform Name>, you agree to Evolve Bank & Trust’s Digital Currency Custody Account Agreement.” *“Digital Currency Custody Account Agreement” ­must be a hyperlink to the Platform’s custom agreement, provided by SynapseFI. * ##Within your Terms of Service In compliance with UDAAP law, Platforms will be required to disclose information regarding the terms of service. The following must be disclosed prior to account opening: * Any fees associated with services, including network fees * Any income generated from the exchange spread, if applicable * Whether the provider offers custodial or noncustodial accounts * It should be made clear who will maintain control of the funds and private keys * Any eligibility requirements/restrictions ##Disclosure of Risk The Platform must be transparent regarding the risk of trading cryptocurrencies applicable to their services. The following disclosures must be provided to users, in a clear and conspicuous manner. *“Trading cryptocurrencies involves risk, and there is the potential of losing funds. Additionally, cryptocurrencies:* ** Are not FDIC Insured, or insured by any other federal agency* ** Are not deposits of or guaranteed by a bank* ** May lose value* ** Return on investment is not guaranteed”* ##Service Provider Disclosure The Platform must clarify which entities will be providing specific services. The following disclosure must be made clear to the Users and included within an FAQ page, or other similar resource, which is easy to locate. *“Digital currency will be held in digital wallets in the custody of Evolve Bank & Trust, on your behalf. Evolve Bank & Trust may contract with third parties to provide wallet services as well as conversion functionality.”* The Platform must disclose the following information regarding funds availability in relation to digital currency, and ensure Users understand that large transactions may not be processed immediately if they exceed the amount of that particular digital currency stored online at the time of the transaction. *“In order to keep funds within a digital wallet secure, a portion of the funds will be stored offline. Because of this, unusually large transactions may be delayed.”* ##Non-Adviser Disclaimer For cryptocurrency exchange platforms, language similar to the following must be included on the Terms of Service page as well as the FAQ page: *“<Platform Name> is not acting and cannot act as an advisor, including as to any financial, legal, investment, insurance and/or tax matters. Any information provided by <Platform Name> is for general information only. Any decision to purchase or sell digital currency is solely your decision and we shall not be liable for any loss suffered.” * ##Capital Gains Reporting For any platform using our BTC-US Node, the following clause will be included in the Terms of Service and should be added to the FAQ page as well. *“The value of any capital gains related to buying and selling cryptocurrency may constitute taxable income. Synapse Financial Technologies will issue an Internal Revenue Service Form 1040 Schedule D (or other appropriate form) to you that reflects the value of the gain, if necessary. Please consult your tax advisor. SynapseFI and its affiliates and associates do not provide tax advice.”*