Terms of Use

GENERAL TERMS AND CONDITIONS

1. 1. These Terms and Conditions for the Sale of Virtual Assets (hereinafter referred to as the Terms) define the procedure for the sale of virtual assets in the course of activities of the virtual asset trading operator (cryptoexchange) CoinHub Open Joint-Stock Company (hereinafter referred to as the Company).
   2. For the purposes of these Terms and Conditions, the following terms shall have the following meanings:
   • The Company — CoinHub Open Joint-Stock Company A virtual asset trading operator (cryptoexchange) is a provider of services related to virtual assets, established in the organizational and legal form of a joint-stock company, providing services directly facilitating the centralized execution of transactions with virtual assets, information on whose transactions and trading sessions is publicly disclosed by notifying trading participants of the place and time of trading, the list and quotation of virtual assets admitted to trading, and the results of trading sessions;
   • Client - a counterparty of the Company (an individual or a legal entity) with whom it conducts transactions (operations) aimed at the acquisition, alienation of virtual assets, the exchange of virtual assets for other virtual assets, or who has applied to it for the execution of such transactions (operations);
   • Beneficial owner - an individual who is the owner of the virtual asset trading operator (cryptoexchange) or, directly or indirectly (through third parties), has the right or the ability to give mandatory for a given virtual asset trading operator (cryptoexchange), instructions, influence the decisions made by it, or otherwise control the activities of the virtual asset trading operator (cryptoexchange);
   • Qualified virtual asset investor - an individual or legal entity whose financial resources are used to execute transactions by the virtual asset trading operator (cryptoexchange);
   • Clients - counterparties of the virtual asset trading operator (cryptoexchange), individuals and legal entities, including foreign ones, with whom it executes transactions (operations);
   • Clearing - a set of operations to determine mutual obligations (collection, reconciliation, adjustment of information on transactions with virtual assets) and their offsetting against the delivery of virtual assets and settlements on them;
   • Manipulation of virtual asset prices - the performance of actions that have an adverse effect on significant influence on the demand and/or supply of virtual assets, the market price of virtual assets, or the volume of trading in virtual assets, with the purpose of artificially inflating or deflating the prices of virtual assets relative to the level prevailing in market conditions,
   • Settlement bank - a commercial bank with the appropriate license, operating in the Kyrgyz Republic or outside its jurisdiction, but holding the appropriate license of the country of location;
   • Virtual asset trading - the process of concluding purchase and sale transactions with virtual assets on the electronic platform of a virtual asset trading operator (cryptoexchange);
   • Trading participants of a virtual asset trading operator (cryptoexchange) - clients admitted by the virtual asset trading operator (cryptoexchange) to trading in virtual assets;
   • Authorized body - an authorized state body in the field of virtual assets;
   • Electronic platform of a virtual asset operator (cryptoexchange) - a trading information system within which the following is carried out:

   - receiving, monitoring, and registering applications for participation in trading in virtual assets;

   - receiving, monitoring, and registering applications for the purchase, sale, and (or) exchange of virtual assets;

   - concluding transactions with virtual assets on the electronic platform of the virtual asset trading operator (cryptoexchange);

   - determining prices for virtual assets;

   - determining the requirements and obligations of the parties based on the results of transactions with virtual assets, as well as ensuring the execution of these transactions;

   - preparing and generating reporting documents based on the results Conducting transactions with virtual assets;

   - storing, processing, and disclosing information necessary for the execution and fulfillment of transactions with virtual assets;

   - performing other functions required by trading participants;

   • A centralized virtual asset trading operator (cryptoexchange) is a provider of services related to virtual assets, providing its services on an ad hoc basis. Resolving transactions with virtual assets based on the centralized storage of virtual assets in their wallets and through smart contracts;
   • Listing is the procedure for including virtual assets in the list of a virtual asset trading operator (cryptoexchange) that meet special criteria established by the virtual asset trading operator (cryptoexchange).
   • Other terms are used in the meanings defined by the Law of the Kyrgyz Republic "On Virtual Assets".

   Structural divisions of a virtual asset trading operator (cryptoexchange)

   3. The Company's structure includes the following functional divisions:

   - Listing Committee Department (issuance of virtual assets, stablecoins);

   - Trading Department;

   - Information Technology and Security Department;

   - Clearing and Client Identification Department;

   - Internal Control (Compliance Control) Department.

   4. If the Company stores user assets on its balance sheets, it is obligated to ensure separate accounting and storage of the Company's financial assets, electronic virtual assets, and cash held by the Company. Joint custody of funds or virtual assets of two or more clients is prohibited.
   5. The Company is obligated to ensure control over virtual asset transactions processed through its digital wallets in order to identify violations of Kyrgyz Republic legislation regarding virtual assets.
   6. If such violations are discovered, the Company must take measures to stop them and prevent them in the future.
   7. Information about each violation of Kyrgyz Republic legislation regarding virtual assets identified by the Company (including confirmation that such violation occurred) must be retained for 5 years from the date of its discovery. At the request of the authorized body, the Company is obliged to report information about the aforementioned facts to the authorized body no later than five business days from the date of receipt of the corresponding request.
   8. If data indicating signs of a crime is discovered, the Company is obliged to immediately send a written report of this crime to the authorized body and law enforcement agencies.
   9. The Company is obliged to ensure transparency of the process of concluding and executing transactions in its trading system by providing participants in virtual asset trading with the ability to monitor the progress of this process using software and hardware.
   10. The Company is obliged to provide a technical base for maintaining, storing, processing, and disclosing information necessary for concluding and executing transactions with virtual assets, including a trading system.
   11. 11. The Company's trading system must ensure that trading participants execute all types of transactions in accordance with the rules for trading virtual assets and stablecoins, agreed with the authorized body.
   12. The company must have and manage software that enables uninterrupted operations and trading on its platform.
   13. The company is obligated to identify, assess, monitor, and take effective measures to mitigate its own risks associated with money laundering and terrorist financing.
   14. The company is obligated to develop and implement documented internal financial monitoring procedures and other procedures aimed at preventing money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction in accordance with the legislation of the Kyrgyz Republic in the area of ​​combating the financing of terrorist activities and the legalization (laundering) of criminal proceeds.
   15. The company is prohibited from conducting transactions with virtual assets for which the transactions (operations) are anonymous.

   Features of cash accounting

   16. To record clients' funds, the Company opens accounts with a clearing bank that meet the requirements for preventing money laundering and terrorist financing.
   17. In the internal clearing system, the Company opens and maintains accounts to record clients' funds, to which funds are credited or debited in accordance with receipts or withdrawals to/from the corresponding account(s) with the clearing bank and transactions with virtual assets.
   18. The movement of funds between accounts is carried out based on client instructions or as a result of the fulfillment of the depositor's obligations regarding completed transactions with virtual assets. Depositors' orders for the transfer of funds must be executed within no more than three banking days.

   Data (Information) Storage and Protection Procedure

   19. Company:

   - ensures the storage of information on each transaction with virtual assets for at least 5 years;

   - performs backup copies of all data on transactions (operations) with virtual assets completed by clients at the end of each calendar day;

   - ensures the execution of client requests for transactions (operations) with virtual assets in accordance with legal requirements, if it is possible to execute such requests (including when the presence of counter orders placed in the Company's electronic trading system;

   - takes measures to ensure that the Company's employees and persons directly involved in the implementation of civil contracts, who are directly involved in the implementation of the legislation of the Kyrgyz Republic in the field of virtual assets, are aware of its internal regulatory legal acts;

   - ensures that the client confirms their instructions for the return (transfer) of assets held by the Company to the client, as well as, if necessary, other instructions and other actions of the client (by the client using a code sent to their cellular subscriber number);

   - ensures protection of the database from errors and unauthorized access, including:

   1) the procedure for accessing databases, including Establishing restrictions on unauthorized access to databases;

   2) Use of passwords and other means of restricting access to databases;

   3) Description of measures taken by the Company and trading participants aimed at preventing failures and errors in the trading system;

   4) Description of systems that ensure the security of information, as well as the Company's backup systems.

   Transactions and services of the virtual asset trading operator ( crypto exchange )

   20. The Company has the right:

   - organize transactions aimed at the placement of virtual assets in accordance with the legislation of the Kyrgyz Republic and the internal documents of the Company;

   - to conduct transactions aimed at placing one's own virtual assets, in which the Company acts as a party to the transaction (seller).

   21. Conduct transactions aimed at placing virtual assets, in which the Company sells the placed virtual assets (as a party to the transaction (seller)) in the interests of the virtual asset issuer.
   22. These transactions must be conducted by the Company on the basis of relevant agreements concluded between the participating parties.
   23. Transactions with virtual assets that have not undergone state registration of the issue of virtual assets with an authorized body are prohibited, with the exception of foreign virtual assets listed with a virtual asset trading operator (cryptoexchange), issued and circulated by foreign virtual asset trading operators (cryptoexchanges).
   24. Placement of virtual assets based on the principle of complete anonymity of transactions carried out with them transactions are not permitted.

   List of measures aimed at preventing the unlawful use of confidential information

   25. The list of measures aimed at preventing the unlawful use of confidential information should include:

   - a description of the systems for monitoring compliance with the prohibition on the unlawful use or transfer to third parties of confidential information by employees and officials of the Company;

   - the procedure for accessing current information on the progress of trades, officials, and employees of the Company;

   - measures of liability of employees and officials of the Company for actions that resulted in the unlawful use of confidential information.

   26. Official officials of the Company are obliged to comply Requirements for the use of confidential information established by the legislation of the Kyrgyz Republic.
   27. Officers and employees of the Company shall not use for personal purposes and/or transfer to other unauthorized persons information about trading participants, their transactions, and other confidential information, with the exception of the authorized body.
   28. Virtual assets are not a means of payment, neither are controlled by the state and the acquisition of virtual assets may result in the complete loss of funds and other civil rights transferred in exchange for virtual assets.

   Accounting and Reporting of the Company

   29. The Company is required to submit quarterly financial statements prepared in accordance with International Financial Reporting Standards to the authorized government agency.
   30. A complete set of financial statements includes:

   - statement of financial position as of the end of the period;

   - statement of profit or loss and other components of comprehensive income for the period;

   - statement of changes in equity for the period;

   - statement of cash flows for the period;

   - notes, consisting of significant accounting policies and Other explanatory information.

   31. The Company is obligated to submit prompt reports to the authorized government agency, including information on cases of:

   - detection of violations of Kyrgyz Republic legislation in the field of virtual assets by a bidder.

   Reports on all identified violations by a bidder must set out the facts and circumstances of the violation, with mandatory attachment of materials related to the identified violation. The specified information, certified by the signature of the Company's authorized representative, must be sent to the authorized government agency in electronic form within 1 business day of the discovery of the violation;

   - failures in the Company's trading system, certified by the signature of the Company's authorized representative, must be sent to the authorized agency in electronic form within 6 hours of the failure.