‘Algorithm’ – any well-defined procedure and set of unambiguous instructions that allows any computer to solve complex problems on the platform;
‘‘Beneficial Owner’’ – shall have the same meaning assigned to it under regulation 2 of the Prevention of Money Laundering and Funding of Terrorism Regulations, and ‘beneficial ownership’ shall be construed accordingly;
'Client Deposit Money/Client Money' - means the virtual appropriation of the initial client deposit money into the Bank Account of the Promotor;
'Client Asset Account' or ‘Account’ entails the overall term for all wallets and accounts that the client holds with the promotor [including both FIAT and Crypto-wallets] including a short profile of the Client’
‘’Company’’ means a limited liability company constituted in Malta in accordance with the Companies Act or any law which may from time to time be in force, or a company incorporated outside Malta, provided that such company if not incorporated in Malta would qualify to be so incorporated under the Laws of Malta;
‘’Competent Authority’’ means the Malta Financial Services Authority established by the Malta Financial Services Authority Act;
‘Computerised System’ - A system including the input of data, electronic processing and the output of information to be used in the day-to-day conduct of the operation of the platform;
‘Control of Assets’ means the Promotor’s mandate over the client’s asset account or the instance when the Promotor holds a power of attorney by which he can control the client/customer’s assets. For the purposes of this Agreement, the Promotor will not be considered to be holding or controlling Clients’ Money or Customers’ Assets if he does not directly handle the Clients’ Assets;
‘’Court’’ means the Civil Court, First Hall;
‘DLT’ means Distributed Ledger Technology;
‘’DLT Exchange’’ means any trading and, or exchange platform or facility, whether in Malta or in another jurisdiction, on which any form of VFA Asset may be transacted in accordance with the rules of the platform or facility;
‘’Person’’ means a natural or legal person in terms of law;
‘Promotor’ means: LGC (Exchange) Limited, a Company based in Malta with registered office address at: Abacus Business Centre, Level 1, Dun Karm Street, B’kara By-Pass, Birkirkara, BKR 9037, Malta;
‘’VFA Exchange’’ means a DLT Exchange operating in or from within Malta, on which only Virtual Financial Assets may be transacted in accordance with the rules of the platform or facility, which is licensed by the Competent Authority under this Act to provide such services’;
‘’VFA Exchange Operator’’ means a person or persons who manages and, or operates the business of a VFA Exchange and may be the VFA Exchange itself;
‘’Virtual Financial Asset’’ or ‘’VFA’’ means any form of digital medium recordation that is used as a digital medium of exchange, unit of account, or store of value and that is not:
a) Electronic Money
b) A Financial Instrument
c) A Virtual Token.
‘’Virtual Token’’ means a form of digital medium recordation that has no utility, value or application outside of the Exchange platform on which it was issued and may only be redeemed for funds on such platform directly by the issuer of such VFA asset. Provided that electronic money shall be excluded from this definition;
Trading in Virtual Financial Assets on Exchanges involves a high degree of risk to your capital. Virtual Financial Assets may not be appropriate for all investors and you should seek independent advice if necessary. Trading with Virtual Financial Assets may result in total loss of your investment.
The Maltese Government has recently endeavoured to pass three bills entitled: ‘The Virtual Financial Assets Act’ (VFA Act) the ‘Malta Digital Innovation Authority Act’ (MDIA Act) and the ‘Technology and Service Arrangements Act’ (TAS Act) with the main aim of genuinely transforming Malta into: ‘Blockchain Island’ – an innovative and geographically strategic hub providing the first set of Laws regulating primarily (but not limited to) Virtual Financial Assets, VFA Exchanges and Initial Coin Offerings (ICOs).
Since the operation of a VFA Exchange falls under the Second Schedule of the VFA Act [and is specifically classified as a VFA Service], the ‘service’ requires a license to operate under the new proposed legislation. The operation of an Exchange platform benefits from a Transitory provision which is that of twelve months. In other words, this means that an Exchange platform may be created without hesitancy, but the application must be filed with the Competent Authority within the twelve-month period of the coming into force of the Law. Once the application is filed, the VFA Exchange may continue to operate normally until Licensing confirmation/feedback is given by the Competent Authority.
In any event, until the License is fully issued by the MFSA, the Authority will expect all VFA Exchange operators to comply with the rules and regulations of the VFA Exchange on a ‘best effort’ and ‘best practice’ basis. In this regard, the following prospective Terms and Conditions may be revised from time to time by our Compliance team to ensure their reliability and validity accordingly.
The MFSA has also recently issued a Consultation Paper pertaining to ‘the Virtual Financial Assets Regulations to be issued under the Virtual Financial Assets Act’. Any person shall upon submission of an application for the granting of a license irrespective of whether the application is eventually accepted or not, pay to the competent authority the respective fee as established in the Act. In this connection, operators of an Exchange will be expected to apply for a VFAA Class 4 license specifically dealing with License holders authorised to operate a VFA exchange and to hold or control clients’ money, virtual financial assets and, or private cryptographic keys and custodian or nominee services solely in relation to the operation and activities of such VFA Exchange.
This agreement is between you (hereinafter known as ‘The Client’) and the VFA Exchange operator. (Operating the: VFA Exchange: ‘LGC-Exchange’).
As this is a legally binding contract, the Client is cordially requested to carefully read through this agreement and related notices before using any of LGC-Exchange’s Services.
By registering, accessing or using LGC-Exchange, the Client agrees to the terms and conditions as laid out in this User Agreement. Should the Client disagree with this User Agreement, please proceed to initiate the account lock function (for existing users) and stop the usage of LGC-Exchange and any of its services.
For more information on LGC-Exchange, the Client is invited to refer to the company and license information found on the website.
If there are any questions regarding this agreement, please feel free to contact LGC-Exchange for clarification via our Customer Support team: ([email protected]).
LGC-Exchange reserves the right to modify or change the terms and conditions of the agreement at any time and at its sole discretion. LGC-Exchange will provide notice of these changes by updating the revised Terms & Conditions on the webpage (www.LGC-exchange.com) and changing the “[Last revised:]” date on this page.
By registering to use an LGC-Exchange Client Asset Account, the Client affirms that he/she is at least 18 years old and is an individual, legal person or other organization with full legal capacity to enter into this User Agreement between you, the Client and LGC-Exchange.
If the Client is not at least 18 years old, the guardian shall undertake all consequences resulting from your actions and LGC-Exchange shall have the right to cancel or freeze your Client Asset Account in addition to filing claims against you and your guardian for compensation.
By accessing and using LGC-Exchange and any of its services, the Client acknowledges and declares that he/she is not on any trade or economic sanctions lists, such as the United Nations Security Council Sanctions List and its equivalent. LGC-Exchange maintains the right countries.
The content of this Agreement shall not be excluded from the laws of the country under which the user belongs. LGC-Exchange maintains its stance that prohibited users are not to use or access LGC-Exchange and any of its services/platform.
LGC-Exchange provides an online virtual financial asset trading platform (crypto to crypto/fiat to crypto/crypto-fiat) for products commonly known as cryptographic tokens, digital tokens or cryptographic currency. LGC-Exchange does not provide FIAT trading capabilities on its platform and as such is not subjected to the stringent regulations that come with it. LGC-Exchange functions as a trading platform provider and is not a buyer or seller in trades made between traders. Traders must register and open a Client Asset Account with LGC-Exchange and virtual financial assets (VFAs) prior to commencement of trading. Traders may request the withdrawal of their virtual financial asset and or FIAT subject to the limitations as stated in the Terms and Conditions.
LGC-Exchange strives to maintain the accuracy of information posted on its website however it cannot guarantee the accuracy, suitability, reliability, completeness, performance or fitness for purpose of the content through the website and will not accept liability for any loss or damage that may arise directly or indirectly from the content. Information on LGC-Exchange’s website can be subjected to change without notice and is provided for the primary purpose of facilitating users to arrive at independent decisions. All users of LGC-Exchange must understand that there are risks involved in trading. LGC-Exchange encourages all users to exercise prudence and trade responsibly within their own means.
While LGC-Exchange emphasises platform security to ensure the continuity and security of its services (announcements will be made in event of downtime/maintenance), it will be non-accountable to Act of God, Force Majeure, malicious targeted hacking, terrorist attacks and other unforeseen circumstances. LGC-Exchange reserves the right to cancel, rollback or block transactions of all type on its platform in event of abnormal transactions.
LGC-Exchange will not ask for any password from its users nor ask users to transfer funds that are not listed on its trading platform. Users are encouraged to exercise prudence in dealing with discounts or promotions that could lead to them getting scammed. While the list is non-exhaustive, you agree that LGC-Exchange will not be held responsible for any losses arising from the situations stated above.
By using LGC-Exchange and any of its services, the Client declares that all information to LGC-Exchange in connection with these Terms are true, accurate and complete.
With registration of a Client Asset Account on LGC-Exchange, the Client agrees to share personal information requested for the purposes of identity verification. This information is used specifically for the detection of money laundering, terrorist financing, fraud and other financial crimes on the LGC-Exchange platform (and is fully compliant with recent amendments to the Fourth Money Laundering Directive specifically pertaining to Beneficial Ownership, Transparency and KYC regulations)
In addition to providing this information, to facilitate compliance with global industry and government standards for data retention, the Client agrees to permit LGC-Exchange to keep a record of such information for the lifetime of your account plus 5 years beyond account closing. The Client also authorises LGC-Exchange to make inquiries, either directly or through third parties, that are deemed necessary to verify the Client’s identity or to protect the Client and/or LGC-Exchange against financial crimes such as fraud.
All relevant Client Deposits shall be kept separate from money belonging to LGC-Exchange in a Client Asset Account, in accordance with applicable law and regulations, unless and until such amounts are returned to the Client, become due and payable to LGC-Exchange. In accordance with this Agreement or are otherwise paid away or transferred in accordance with applicable law and regulations.
By accepting the above-mentioned Terms and Conditions, the Client hereby grants to the Promotor the Authority to open and establish a ‘Client Asset Account’ and the Client agrees to grant the Promotor the right to ‘control’ assets [including VFAs and Money] as defined in the ‘Preliminary’ part of this Agreement.
For all intents and purposes of this Agreement, every User/Client shall be verified ‘a priori’ via the Company’s Video on-boarding procedure.
This Mandatory Verification setup will be created by any authorised representative of (such as a third-party KYC Service Provider) possessing all the relevant and necessary credentials to conduct the KYC/Due Diligence compliance.
The Client is duty bound to follow ALL on-screen instructions and adhere to ALL requirements that emanate from the on-boarding accordingly.
‘Client Asset Account’ Usage Requirements & Registration.
Where LGC-Exchange is required under applicable law and regulations to report transactions with the Client to a competent authority or otherwise, the Client must obtain and provide LGC-Exchange with any information as LGC-Exchange may require determining the Client’s national client identifier. The Client shall not be permitted to place Orders unless and until it has provided the information required.
In order to open a Client Asset Account, the Client must fully complete and digitally sign the Application form generated via the application procedure. LGC-Exchange may carry out all the searches and enquiries that LGC-Exchange deems to be appropriate to assess the Client's credit-worthiness and/or to carry out any anti money laundering controls which may be required in terms of the applicable law.
LGC-Exchange may use credit-scoring methods to assess the Client's Application, to verify the Client’s identity and to consider any changes to the way in which the Client operates the Client Asset Account. This information may be also used for the prevention of money laundering or terrorism financing as well as for the management of the Client Asset Account. The Client authorises LGC-Exchange to use the information to perform the above checks in relation to this Agreement.
The Identity Verification information which may be requested generally includes, but is not limited to the:
• Email Address,
• Contact Information,
• Telephone Number,
• Government Issued ID/Passport,
• Proof of address,
• Proof of source of income,
• Proof of source of wealth,
• PEP Declaration,
• Personal Income Tax Number (TIN).
The Client shall inform LGC-Exchange immediately of any material changes to the information provided to LGC-Exchange by means of the Application Form. Examples of material changes may include changes related to relation to contact details or any adverse matter relating to the Client' s financial status.
If the Client does not inform LGC-Exchange of any material changes to the Application or any errors in the Application, LGC-Exchange shall be authorised to close out all outstanding positions and cancel all pending Orders of the client and to terminate the relationship.
In providing this required information, the Client confirms that it is accurate and authentic. Post-registration, the Client must guarantee that the information is truthful, complete and updated in a timely manner with any changes. If there is any reasonable doubt that any information provided by you is wrong, untruthful, outdated or incomplete, LGC-Exchange shall have the right to send you a notice to demand corrections, remove relevant information directly and, as the case may be, terminate all or part of LGC-Exchange Service to the Client.
The Client shall be solely and fully responsible for any loss or expenses incurred during the use of LGC-Exchange’s Service if the Client cannot be reached through the contact information provided.
The Client hereby acknowledges and agrees that he/she has the obligation to keep all information provided up to date if there are any changes.
LGC-Exchange may or may not accept the Application in its absolute discretion, including if the Client fails to pass the relevant appropriateness checks (whether the Client would like to proceed). If the Application is accepted by LGC-Exchange, the Client shall be notified of its Client Asset Account number and invited to make an initial deposit in accordance with the instructions contained in the Application and any other operative indications available on the Website (‘Initial Deposit'). The Initial Deposit may be made by means of an accepted credit card or bank transfer.
The Client may only start trading and exchanging with LGC-Exchange after the Initial Deposit is credited to the Client Asset Account and such funds have been cleared.
Implement the “mandate” the “POA” here as per ISA definition of controlling and holding clients’ funds.
LGC-Exchange shall be authorised to act upon any digital instructions transmitted by the Client. In particular, LGC-Exchange shall be entitled to carry out any instructions or Orders transmitted using Client's username, password and Account number (Client Account Tag/User ID). The Client may request LGC-Exchange to make payments by debiting the Account to the extent cleared funds are available at the time of the request (electronically via the Website).
The Initial Deposit and any additional funds deposited by the Client (together, Client Deposits) shall be credited to the Client Asset Account as the case may be.
Any crediting or debiting of Client Deposits to the Client Asset Account is net of any bank fees, commissions or other charges or costs (including any applicable taxes, including withholding taxes), and you hereby expressly authorise LGC-Exchange to make any such deductions.
LGC-Exchange may receive interest in respect of the Client Asset Account but will not pay any portion of such amounts to the Client. The Client hereby waives any right to receive interest on any positive balance of Client Deposits on the Client Asset Account.
All Client Deposits shall be treated as ‘Client Money’ in accordance with applicable law and regulations.
The Client Asset Account shall be denominated in EUR/USD/GBP (‘Base Currency') by default. Any payment owed by a party to the other as a result of any gain, earning, loss, cost, liability or otherwise which is made, incurred, accrued or howsoever arising under or in connection with this Agreement and is denominated in a currency other than the Base Currency shall be converted into the Base Currency at the then prevailing exchange rates as determined by LGC-Exchange.
All gains, earnings, losses, costs and liabilities made or incurred by the Client under or in relation to any VFA or any Service provided by LGC-Exchange or otherwise in connection with this Agreement (including any fees charged by LGC-Exchange hereunder) shall be credited or debited to the Client Asset Account, as applicable. The Client hereby expressly authorises LGC-Exchange to deduct any such amounts from any Client Deposits held in the Client Asset Account by LGC-Exchange on the Client’s behalf.
The Client may, at any time, withdraw funds (‘Withdrawn Funds’) from the Client Asset Account by submitting a request to LGC-Exchange (‘Withdrawal Request’). The amount requested must be available funds. LGC-Exchange may, at its discretion, elect to withhold payment (or deduct an amount from it, as applicable) if:
• LGC-Exchange is required by applicable law or regulations to deduct or withhold such payment; or
• there is an unresolved dispute between LGC-Exchange and the Client in connection with this Agreement or any related contract in respect of such funds.
• LGC-Exchange will only pay withdrawn funds to the Client Asset Account or payment method that the Client uses to fund their own Client Asset Account, unless the Client has notified a change in their payment details in writing in advance and this is in compliance with applicable law and regulations, in particular anti-money laundering controls.
• The Client shall make Client Deposits and submit withdrawal requests to LGC-Exchange using the deposit or withdrawal function on the Platform. The Client shall be solely responsible for the safekeeping of the LGC-Exchange Client Asset account and password on his/her own, and he/she shall be responsible for all activities under the log-in email, LGC-Exchange account and password (including but not limited to information disclosure, information posting, consent to or submission of various rules and agreements by clicking on the website, online renewal of agreement, etc.).
The Client hereby covenants that:
(a) he/she will notify LGC-Exchange immediately if he/she is aware of any unauthorized use of the LGC-Exchange account and password by any person or any other violations to the security rules;
(b) he/she will strictly observe the security, authentication, dealing, charging, withdrawal mechanism or procedures of the platform/service; and
(c) he/she will log out from the platform by taking proper steps at the end of every visit.
LGC-Exchange will not be responsible for any loss or consequences caused by the Client’s failure to comply with the above terms and conditions.
The Client represents and warrants to LGC-Exchange that:
● using a device, software or subroutine to interfere with the site
● overloading network equipments with unreasonable data loading requests
● executing malicious sales or purchases on the market
● block and close order requests
● freezing your Client Asset Account
● reporting the incident to authorities
● publishing the alleged violations and actions that have been taken
● deleting any information, you published that is in violation
The Client consents to the LGC-Exchange platform’s Compliance/KYC checks and procedures and under no circumstance may LGC-Exchange refund any money or grant access to the platform before all necessary procedures have been vetted and consent is formally authorised for the Client to access the platform/service.
Without prejudice to the aforesaid, any funds which are kept in the Client Asset Account will be ‘frozen’ until the Compliance procedure is completed and under no circumstance may they be ‘exchanged’ or ‘withdrawn’.
If your alleged violation causes any losses to a third party, you shall solely undertake all the legal liabilities in your own name and hold LGC-Exchange harmless from any loss, fine or extra expenses. If, due to any alleged violation LGC-Exchange incurs any losses, is claimed by any third party for compensation or suffers any punishment imposed by any administrative authorities, you shall indemnify LGC-Exchange against any losses and expense caused thereby, including reasonable attorney’s fee.
The Client acknowledges and agrees that the above representations and warranties have been a material inducement to the decision of LGC-Exchange to enter into this Agreement with the Client.
LGC-Exchange reserves the right to resolve issues and disputes at its sole discretion. Some issues include infringement of others’ rights, violation of laws and regulations, abnormal trades and others not explicitly mentioned in the Terms. Users agree to bear the costs arising from the process of dispute resolution.
LGC-Exchange reserves the rights to levy service fees on users who use its services. It is in the discretion of LGC-Exchange to adjust the service fees charged to users using its services.
Provision of Service
LGC-Exchange will provide LGC-Exchange Service at an “as is” and “commercially available” condition and does not offer any form of warranty with regards to the Service’s reliability, stability, accuracy and completeness of the technology involved. LGC-Exchange serves merely as a venue of transactions where coin-related information can be acquired, and coin-related transactions can be conducted. LGC-Exchange cannot control the quality, security or legality of the coin involved in any transaction, truthfulness of the transaction information, or capacity of the parties to any transaction to perform their obligations under the rules. The Client must carefully consider the associated investment risks, legal status and validity of the transaction information and investment decisions prior to your use of the LGC-Exchange Services provided.
The Client acknowledges and agrees that, LGC-Exchange shall not be liable for any of the Client’s losses caused by any of the following events, including but not limited to:
● Use or failure to use LGC-Exchange service
● Unauthorized use of your account or unauthorized alteration of your data by third parties
● Your misunderstanding of LGC-Exchange Service
● Any other losses related to LGC-Exchange Service which are not directly attributable to LGC-Exchange
In no event shall LGC-Exchange be liable for any failure or delay of service resulting from regular network maintenance or external factors such as power failure, natural disaster, service provider-side problems or governmental acts.
The Client agrees to indemnify and hold harmless LGC-Exchange, its affiliates, contractors, licensors, and their respective directors, officers, employees and agents from and against any claims and damages (including attorneys’ fees, fines or penalties imposed by any regulatory authority) arising out of the Client’s breach or our enforcement of this Agreement. This shall also apply to the Client’s violation of any applicable law, regulation, or rights of any third party during your use of the LGC-Exchange Service.
● The Client Asset Account is subject to a governmental proceeding, criminal investigation or other pending litigation
● We detect unusual activity in the Client Asset Account
● We detect unauthorized access to the Client Asset Account
● We are required to do so by a court order or command by a regulatory/government authority
In case of any of the following events, LGC-Exchange shall have the right to directly terminate this agreement by cancelling the Client’s Asset Account, and shall have the right to permanently freeze (cancel) the authorizations of the Client’s Asset Account on LGC-Exchange and withdraw the corresponding LGC-Exchange Account thereof:
● after LGC-Exchange terminates services to the Client,
● the Client allegedly registers or registers in any other person’s name as LGC-Exchange user again, directly or indirectly;
● the main content of user’s information that the Client has provided is untruthful, inaccurate, outdated or incomplete;
● when this agreement (including the rules) is amended, the Client expressly states and notifies LGC-Exchange of his/her unwillingness to accept the amended service agreement;
● any other circumstances where LGC-Exchange deems it should terminate the services.
Should the Client Asset account be terminated, the account & transactional information required for meeting data retention standards will be securely stored for five years. In addition, if a transaction is unfinished during the account termination process, LGC-Exchange shall have the right to notify the Client’s counterparty of the situation at that time.
Remaining funds after account termination (normal).
Once the Client Asset account is closed/withdrawn, all remaining balance (which includes charges and liabilities owed to LGC-Exchange) on the account will be payable at once to LGC-Exchange. Upon payment of all outstanding charges to LGC-Exchange (if any), the user will have 5 working days to withdraw all funds from the account.
Remaining funds after Client Asset Account termination (Fraud/AML/Violation of Terms).
LGC-Exchange maintains full custody of the funds and user data/information which may be turned over to the authorities in event of account suspension/closure arising from fraud investigations, AML investigations or violation of LGC-Exchange’s Terms (e.g. trading on LGC-Exchange from a sanctioned country).
It is the responsibility of the user to abide by local laws in relation to the legal usage of LGC-Exchange in their local jurisdiction. Users must also factor, to the extent of their local law all aspects of taxation, the withholding, collection, reporting and remittance to their appropriate tax authorities. All users of LGC-Exchange and any of its services acknowledge and declare that the source of their funds come from a legitimate manner and are not derived from illegal activities. LGC-Exchange maintains a stance of cooperation with law enforcement authorities globally and will not hesitate to seize, freeze, terminate the Client Asset Account and funds of users which are flagged out or investigated by legal mandate.
LGC-Exchange processes all personal information in accordance with applicable law and regulations relating to the processing, privacy, and use of personal data (as applicable to the Client and/or Services provided under this Agreement) ('Data Protection Laws').
For the purposes of Data Protection Laws, the data controller is LGC-Exchange in relation to any personal data (as defined in Data Protection Laws, and GDPR) provided by or held in connection with the Client.
LGC-Exchange may collect, hold and process personal information about the Client from the way in which the Client engages with LGC-Exchange (such as by ﬁlling in the Application, placing Orders, or if the Client contacts LGC-Exchange by post, email, telephone, in person or by any other means), through the Client’s interactions with LGC-Exchange and/or Services that the Client holds or takes out with LGC-Exchange.
LGC-Exchange relies on the following legal basis to process and use the Client’s personal information:
• processing is necessary for the performance of the Services provided to the Client under this Agreement;
LGC-Exchange has security procedures covering the storage and disclosure of the Client's personal information to prevent unauthorised access of any Client personal information and to comply with Data Protection Laws.
Neither party may disclose to any person any information relating to the business, investments, finances or other matters of a confidential nature of the other party of which it may come into possession in connection with this Agreement and its performance by the other party, and each party shall use all reasonable endeavours to prevent such disclosure, except as may be required by any applicable law, rule or regulatory, law enforcement or tax authority. For the avoidance of doubt, LGC-Exchange may be required to disclose information to third parties in order to carry out credit- and/or fraud-checks, and the Client expressly consents to such disclosure.
If the Client has any complaints, feedback or questions, the Company may be contacted via [email protected] and we will in our best efforts try to resolve the issue with expediency.
The law applicable to the agreement between the User and LGC-Exchange, the subject-matter of which are the services provided by LGC-Exchange within the Website, under the terms specified in the Regulations, shall be the Maltese law.
All and any disputes related to the Services provided by LGC-Exchange shall be resolved by competent Maltese Courts of Law. The User who is a consumer also has the option of using the EU ODR Internet platform, available at the following Internet address: http://ec.europa.eu/consumers/odr/.
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