Understanding the dangers in cryptocurrencies
Your prior experience with traditional currencies often works differently than cryptocurrencies as it is a new emerging technology. Thus, we, at Tokenize would encourage you to educate yourself of the various risk that comes with cryptocurrencies and not to invest money that you cannot afford to lose. We have highlighted some of the key risks below:
Generally, Cryptocurrency transactions are irrevocable. This means if you (i) send cryptocurrency to the wrong address, (ii) send the wrong amount of cryptocurrency, (iii) send an unsupported cryptocurrency which Tokenize is unable to access and return back to you, or if (iv) fraudulent cryptocurrency transactions were made from your account, you may not be able to recover the cryptocurrency. Please be inform that Tokenize will not be liable to you for any losses resulting either by accident, or fraudulently.
Cryptocurrency’s prices are fickle and unpredictable in comparison to local currency, which may result in significant loss over a short period of time. Dealing with cryptocurrency may result in a total loss of your funds.
Tokenize is under no obligation to buy back your cryptocurrency in the future and because Tokenize’s Supported Cryptocurrencies are not backed by any entity, you have no right of recourse against an issuing entity. With certain country exceptions, Tokenize’s Supported Cryptocurrencies are not considered legal tender in the countries we operate in. BTC and ETH are not legal tenders and are not backed by the government. Accounts and value balances are not subject to any government-backed deposit insurance or any other government protections. Any losses resulting from you trading in cryptocurrency are not covered by the Capital Market Compensation Fund in Singapore.
Any changes or actions in Legislation and/or regulation at state or international level, may affect the use, transfer, exchange, and value of cryptocurrency.
The date or time that you conducted the transaction may not be the same as the recorded time of the transaction in the “blockchain” ledger. However, the Cryptocurrency transactions are deem to be made when it has been recorded in the ledger. Without the willingness of market participants to exchange cryptocurrency for local currency, which drives the value of each cryptocurrency, and the demand disappears, it could cause a permanent loss of value of the cryptocurrency.
There is no guarantee that a person or business who currently accepts cryptocurrency as payment will continue to do so in the future.
You are solely liable for any tax occurred by buying and selling cryptocurrency, and for the tax obligations that comes with.
The nature of cryptocurrency may lead to an increased risk of fraud or cyber attack. You are responsible for keeping your Tokenize account safe from these types of attacks.
Having technological problems caused by your service provider may prevent access to or use of your cryptocurrency because of the nature of cryptocurrencies. In addition to the measures above, our Singapore customers, funds are subjected to an independent corporate trustee services provided by a reputable legal firm located in SIngapore.