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Crypto Asset Notice
This app contains Crypto Asset Services not regulated by the Financial Conduct Authority. Please be aware that:
- You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to Crypto Asset Services.
- Crypto Assets are not protected by the Financial Services Compensation Scheme.
- Crypto Assets may experience frequent price volatility resulting in a high degree of risk.
For more information, please review the Crypto Assets FAQ below.
By clicking “accept” you confirm that you understand the risks associated with Crypto Assets and Crypto Asset Services.
What are Crypto Assets?
“Crypto Assets” means a crypto asset (also called a “crypto currency,” “digital asset”, “virtual currency,” “digital currency,” or “digital commodity”) such as bitcoin or ethereum, which is a digital representation of value based on (or built on top of) a cryptographic protocol of a computer network. Soundman allows customers to trade the following Crypto Assets: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and more.
Are Crypto Assets Regulated?
If a company is engaged in regulated business activity in the UK, that company will usually need to be authorised by the Financial Conduct Authority (“FCA“). Certain activities relating to Crypto Assets are regulated in the UK. The activities carried on by Soundman Interactive, (“Soundman“) in relation to Crypto Assets are not however regulated in the UK, and Soundman is not therefore authorised by the FCA. However, pursuant to the Soundman Anti Bribery & Money Laundering Directive, Soundman complies with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended.
Soundman operates a Crypto Asset exchange and provides services relating to Crypto Assets including ICO’s, swap/exchange and custody services. If you receive services from Soundman, such services will not attract regulatory protections. This is because Soundman is not authorised or regulated by the FCA (nor is it required to be). In particular, you will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to Soundman’s Crypto Asset exchange or other services related to Crypto Assets provided by Soundman.
Is the Soundman i-Wallet Regulated?
Soundman issues i-Wallet credits (“tokens“) and provides related payment services. These are not regulated activities in the UK and Soundman is therefore not required to be authorised by the FCA. These services relate to the issuance of i-wallet tokens and payment services related to such ECR20 tokens.
For the avoidance of doubt, if you are a customer of Soundman and you choose to use i-wallet credits issued by Soundman to purchase Crypto Assets on the exchange operated by Soundman you will only receive regulatory protections in respect of the services provided by PayPal.
If you would like further information on what activities are provided by Soundman and what activities are provided by Associates, please contact our Customer Services Team.
What are the Risks Associated with Crypto Assets?
These risk considerations relate to services provided by Soundman. As above, the Crypto Assets services provided by Soundman are not regulated by the FCA. You should be aware that the risk of loss in trading of holding Crypto Assets can be substantial. Swap on the Exchange with minimal risk. As with any asset, the value of Crypto Assets can go up or down and there can be substantial risk that you lose money buying, selling, holding or investing in Crypto Assets. The Crypto Assets services provided by Soundman are not regulated by the FCA or any other regulator in the UK. You should carefully consider whether trading or holding Crypto Assets is suitable for you in light of your financial condition.
We have set out below some of the key factors and risks you should take into account before trading on Soundman. This is not a complete list of all the risks and it does not explain how these apply to your individual circumstances. You should ensure that you understand these risks before exchanging on Soundman. If anything is unclear, please contact our Customer Services i-Team. If you open an account with Soundman, you should keep these risk factors in mind at all times and ensure you have sufficient financial resources to bear such risk when you trade with us. You should always monitor your positions carefully.
Please note the following risks in accessing or using Crypto Assets services provided by Soundman:
- The risk of loss in trading Crypto Assets may be substantial and losses may occur over a short period of time;
- The price and liquidity of Crypto Assets has been subject to large fluctuations in the past and may be subject to large fluctuations in the future;
- Past performance is not an indication of future performance and the value of Crypto Assets may go down as well as up;
- Soundman is not a regulated financial services provider and you will therefore not have access to UK regulatory protections such as the Financial Ombudsman Service;
- Your Crypto Assets account is not a deposit or investment account which means that fiat currency in your Crypto Assets account will not be protected by the UK’s Financial Services Compensation Scheme (“FSCS“);
- Crypto Assets are not legal tender and are not backed by the government;
- Transactions in Crypto Assets may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;
- Some Crypto Asset transactions shall be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that you initiated the transaction;
- The value of Crypto Assets may be derived from the continued willingness of market participants to exchange fiat currency or Crypto Assets for Crypto Assets, which may result in the potential for permanent and total loss of value of a particular Crypto Asset should the market for that Crypto Asset disappear;
- The nature of Crypto Assets may lead to an increased risk of fraud or cyber-attack, and may mean that technological difficulties experienced by Soundman may prevent the access to or use of your Crypto Assets; and
- Any bond or trust account maintained by Soundman for the benefit of our Users may not be sufficient to cover all losses due to theft or fraud incurred by Users.
Please note that the services provided by Soundman are unlikely to be appropriate for people who:
- Do not understand the impact of and risks associated with Crypto Assets trading;
- Do not have a high risk tolerance.
- Cannot afford to lose the money they are trading with; or
- Do not already have a diversified investment portfolio or savings.
You agree and understand that you are solely responsible for determining the nature, potential value, suitability, and appropriateness of these risks for yourself, and that Soundman does not give advice or recommendations regarding Crypto Assets, including the suitability and appropriateness of, and investment strategies for, Crypto Assets. You agree and understand that you access and use Soundman at your own risk; however, this brief statement does not disclose all of the risks associated with Crypto Assets and using Soundman. You should, therefore, carefully consider whether such use is suitable for you in light of your circumstances and financial resources. You should be aware that you may sustain a total loss of the funds in your Crypto Assets Account, and that under certain market conditions, you may find it difficult or impossible to liquidate a position.