Terms & Conditions

GENERAL TERMS AND CONDITIONS OF TRANSACTION

1. INTRODUCTION

1.1. These General Terms and Conditions of Transaction (hereinafter referred to as the “Terms”) govern the provision of services related to crypto-assets, including virtual currency exchange transactions, by 1654.exchange.

1.2. These Terms set forth the rights and obligations of 1654.exchange (hereinafter referred to as the “Service Provider”) and its Customers, as well as rules and procedures for performing transactions, customer due diligence, compliance with regulatory obligations, and risk mitigation strategies.

1.3. The Service Provider operates in accordance with:

Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA)
Directive (EU) 2015/849 (5AMLD) & Directive (EU) 2018/843 (6AMLD)
General Data Protection Regulation (GDPR) (EU) 2016/679
Act on the Prevention of Money Laundering and Terrorist Financing
Recommendations of the Financial Action Task Force (FATF)

1.4. By accepting these Terms, the Customer agrees to comply with all applicable laws and regulations governing crypto-assets and related services in the European Economic Area (EEA).

1.5. Key Features of the Terms:

Establish the legal framework for transactions between the Service Provider and Customers.
Define compliance requirements in relation to anti-money laundering (AML), counter-terrorist financing (CTF), and consumer protection.
Regulate fees, commissions, risk disclosure, and dispute resolution mechanisms.
Outline data protection measures under GDPR for processing customer information.

2. DEFINITIONS

For the purposes of these Terms, the following definitions shall apply:

2.1. Virtual Currency (Crypto-Asset) – A digital representation of value that:

Can be digitally transferred, stored, or traded.
Functions as a medium of exchange but is not recognized as legal tender.
Falls under the classification of crypto-assets as per MiCA (Article 3), which includes:

Asset-Referenced Tokens (ARTs) – Referencing multiple fiat currencies, commodities, or other assets.
E-Money Tokens (EMTs) – Designed to maintain a stable value by referencing a single fiat currency.
Other Crypto-Assets – Any virtual currencies not classified as ARTs or EMTs under MiCA.

2.2. Virtual Currency Exchange Transaction (Crypto-to-Crypto / Crypto-to-Fiat Exchange) – A transaction where one crypto-asset is exchanged for another or converted into fiat currency at a specified exchange rate.

2.3. Service Provider – 1654.exchange, a legally registered Virtual Asset Service Provider (VASP) in , offering crypto-related financial services in compliance with MiCA and AMLD.

2.4. Customer – A natural or legal person who:

Uses or intends to use the services of the Service Provider.
Is subject to Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures.
Agrees to these Terms by entering into a contractual relationship with the Service Provider.

2.5. Service Agreement – A binding contract between the Customer and the Service Provider, governing specific crypto-related services.

2.6. Price List – The schedule of applicable fees and commissions, updated regularly and disclosed in accordance with MiCA (Article 63).

2.7. Commission Fee – A fixed or percentage-based fee charged for the execution of transactions.

2.8. Data Questionnaire (Customer Due Diligence – CDD Form) – A set of information required from the Customer for compliance with AML/CFT regulations, including:

Identification details (name, surname, date of birth, national ID, passport).
Residential address and proof of address.
Source of funds and purpose of transactions.

2.9. Parties – The Service Provider and the Customer collectively.

2.10. Order – Any instruction given by the Customer to execute a virtual currency transaction.

3. GENERAL PROVISIONS

3.1. The Service Provider provides services related to crypto-assets in accordance with MiCA (Articles 14-15), ensuring legal compliance, operational transparency, and consumer protection.

3.2. By using the Service Provider’s services, the Customer agrees to:

Undergo identity verification (KYC) before any transaction.
Provide necessary information for AML/CFT risk assessment.
Refrain from using services for illicit activities, including money laundering, terrorist financing, or fraud.

3.3. The Service Provider reserves the right to:

Refuse or delay transaction execution if deemed suspicious under MiCA (Article 67).
Request additional due diligence information based on transaction risk assessment.
Suspend services if regulatory changes require enhanced compliance measures.

3.4. Disclosure Obligations:

The Service Provider shall publish its regulatory license details, risk warnings, and legal disclaimers in accordance with MiCA’s consumer protection standards.
Customers shall be provided with full information on fees, commissions, and transaction execution times.

4. TERMS AND CONDITIONS OF TRANSACTION

4.1. Supported Crypto-Assets:

The Service Provider facilitates exchange transactions for Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Dash (DASH), Monero (XMR), Ethereum Classic (ETC), Zcash (ZEC), and other crypto-assets.
New assets may be listed subject to MiCA-compliant risk evaluation procedures.

4.2. Minimum Transaction Amount:

Transactions shall not be executed below 50 EUR or equivalent in crypto-assets.

4.3. Exchange Rate Determination:

For sell orders: The exchange rate is determined when the crypto-asset is received in the Service Provider’s wallet.
For buy orders: The exchange rate is locked after successful KYC verification.

4.4. Transaction Confirmation:

Upon execution, the Customer shall receive a digital receipt, trade confirmation, and transaction summary.

4.5. Cancellation and Refunds:

Transactions cannot be reversed once executed on the blockchain.

Refunds shall only be processed in cases of:

Fraudulent activity detected by the Service Provider.
Operational error caused by the Service Provider.

5. AML/CFT COMPLIANCE AND CUSTOMER DUE DILIGENCE

5.1. The Service Provider complies with MiCA (Articles 61-65) and AML laws by implementing:

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures.
Transaction monitoring and suspicious activity reporting (SAR).
Ongoing risk assessment and compliance reviews.

5.2. KYC Identification Requirements:

Natural persons must provide government-issued ID, proof of address, and a selfie for biometric verification.

Legal entities must submit:

Company registration documents.
Details of beneficial owners (UBO) as per AMLD5/6.
Source of funds documentation.

5.3. High-Risk Customers:

PEPs (Politically Exposed Persons) and residents of high-risk jurisdictions shall undergo additional screening under FATF and MiCA (Article 64) guidelines.

6. RISK DISCLOSURE AND LIABILITY

6.1. Acknowledgment of Risks

6.1.1. The Customer acknowledges and accepts that transactions involving crypto-assets carry high financial risks, including but not limited to:

Market volatility: Crypto-assets are subject to rapid price fluctuations, and past performance is not indicative of future results.
Liquidity risks: Some crypto-assets may have low liquidity, affecting the ability to buy or sell them at a preferred price.
Regulatory risks: Future legal changes in the European uniоn or other jurisdictions may impose restrictions on the usage or trading of crypto-assets.
Security risks: Transactions are irreversible, and improper handling of private keys, wallets, or credentials may lead to the permanent loss of funds.
Operational risks: Technical failures, cyber-attacks, or blockchain network congestion may delay or prevent transactions from being executed.

6.1.2. The Customer is solely responsible for understanding these risks before engaging in any transaction with the Service Provider.

6.2. Limitation of Liability

6.2.1. The Service Provider shall not be liable for:

Any loss, damage, or expense arising from market fluctuations, regulatory changes, or blockchain-related issues.
Transactions executed using credentials that were compromised or accessed by unauthorized third parties.
Losses due to delays in transaction processing caused by blockchain congestion or force majeure events.
Any action taken based on misinterpreted information provided by third-party sources.

6.2.2. The Service Provider shall only be liable for direct damages resulting from its intentional misconduct or gross negligence. Compensation shall not exceed the amount of commission fees charged for the affected transaction.

6.3. Indemnification

6.3.1. The Customer agrees to indemnify and hold harmless the Service Provider from any claims, damages, losses, or liabilities arising from:

Violation of these Terms or applicable laws.
Engagement in fraudulent, illegal, or unauthorized activities.
Failure to comply with AML/KYC requirements resulting in regulatory penalties.

7. DATA PROTECTION AND GDPR COMPLIANCE

7.1. Principles of Personal Data Processing

7.1.1. The Service Provider processes the personal data of Customers in accordance with the General Data Protection Regulation (GDPR) (EU) 2016/679 and other applicable data protection laws.

7.1.2. The Service Provider ensures that personal data is:

Processed lawfully, fairly, and transparently.
Collected for specified and legitimate purposes.
Minimized to only what is necessary for service provision and compliance.
Accurate and updated when required.
Stored securely to prevent unauthorized access, loss, or destruction.

7.2. Personal Data Collected

7.2.1. The Service Provider collects and processes the following categories of personal data:

Identity data (name, surname, date of birth, government-issued ID).
Contact details (email address, phone number, physical address).
Financial data (transaction history, payment details, crypto-wallet addresses).
AML/KYC compliance data (source of funds, proof of address, PEP status).

7.2.2. The Service Provider does not collect or process sensitive personal data, except where required for legal or AML compliance purposes.

7.3. Data Subject Rights

7.3.1. The Customer has the following rights under GDPR:

Right to Access – Request a copy of personal data held.
Right to Rectification – Correct inaccuracies in personal data.
Right to Erasure (“Right to be Forgotten”) – Request deletion of personal data under certain conditions.
Right to Restriction – Limit processing in specific cases.
Right to Data Portability – Receive personal data in a structured format.
Right to Object – Object to processing based on legitimate interests.
Right to Lodge a Complaint – File complaints with data protection authorities.

7.4. Data Retention

7.4.1. The Service Provider retains personal data for the period necessary to:

Fulfill contractual obligations.
Comply with AML/CTF and legal record-keeping requirements (minimum 5 years, as per AMLD5).
Protect the Service Provider’s legitimate interests (dispute resolution, fraud prevention).

7.4.2. After the retention period expires, data is securely deleted or anonymized.

7.5. Data Sharing and Transfers

7.5.1. Personal data may be shared with:

Regulatory authorities upon request.
Payment service providers for transaction processing.
AML/KYC screening providers for compliance purposes.

7.5.2. Cross-border data transfers are conducted in compliance with GDPR safeguards.

8. DISPUTE RESOLUTION AND LEGAL JURISDICTION

8.1. Complaints and Claims Procedure

8.1.1. The Customer may submit complaints regarding service quality, transaction execution, or compliance matters to the Service Provider:

By email: compliance@1654.exchange

8.1.2. The Service Provider shall acknowledge receipt of the complaint within 5 business days and provide a formal response within 15 business days.

8.1.3. If additional investigation is required, the response time may be extended to 35 business days, with written notice to the Customer.

8.2. Governing Law and Jurisdiction

8.2.1. These Terms are governed by the applicable laws of the European uniоn regulatory framework.

8.2.2. Disputes that cannot be resolved amicably shall be referred to:

Competent courts and dispute resolution bodies as determined under applicable international and EU law.
Alternative dispute resolution (ADR) mechanisms, where applicable.

8.3. Arbitration for Commercial Disputes

8.3.1. If the Customer is a business entity, disputes may be settled through arbitration at:

Liepāja Permanent Arbitration Court (Riga, Latvia).

8.3.2. The arbitration shall be conducted in English or , unless otherwise agreed.

9. FORCE MAJEURE AND BUSINESS CONTINUITY

9.1. Definition of Force Majeure

9.1.1. The Service Provider shall not be held liable for any failure or delay in the performance of its obligations under these Terms caused by Force Majeure events, which inсlude but are not limited to:

Natural disasters (earthquakes, floods, fires, pandemics).
Wars, armed conflicts, terrorism, or civil unrest.
Governmental actions, legal restrictions, or regulatory changes affecting the cryptocurrency industry.
Failures of communication networks, power outages, cyberattacks, hacking, or major blockchain malfunctions.
Economic crises, banking systеm failures, or financial market disruptions.

9.1.2. In the event of Force Majeure, the Service Provider shall make reasonable efforts to resume services as soon as possible. However, the Service Provider shall not be liable for any direct or indirect losses arising due to such events.

9.2. Business Continuity Plan

9.2.1. The Service Provider maintains a Business Continuity and Disaster Recovery Plan to minimize disruptions and ensure service availability in case of unforeseen events.

9.2.2. Measures inсlude:

Data backup protocols and cybersecurity safeguards.
Alternative operational facilities and emergency response teams.
Contingency plans for regulatory and financial disruptions.

9.2.3. The Customer acknowledges that despite these efforts, certain disruptions cannot be prevented or controlled.

10. TERMINATION OF AGREEMENT AND ACCOUNT CLOSURE

10.1. Termination by the Customer

10.1.1. The Customer may terminate the Service Agreement at any time by submitting a written request to the Service Provider.

10.1.2. The Customer must ensure that:

No pending transactions remain in their account.
All obligations to the Service Provider are fulfilled.

10.1.3. The Service Provider shall process the account closure within 15 business days, provided there are no outstanding issues.

10.2. Termination by the Service Provider

10.2.1. The Service Provider reserves the right to suspend or terminate the Customer’s account under the following conditions:

Violation of these Terms or any applicable laws.
Failure to comply with AML/KYC requirements or providing false/misleading information.
Suspicious transactions indicating potential fraud, money laundering, or illegal activity.
Orders from regulatory authorities or law enforcement agencies.
Prolonged inactivity (e.g., account not used for more than 12 months).

10.2.2. If termination is initiated by the Service Provider, the Customer shall receive a formal notice stating the reasons.

10.3. Consequences of Termination

10.3.1. Upon termination, the Customer shall no longer have access to services, and all pending transactions will be canceled unless prohibited by law.

10.3.2. Any remaining balances in the Customer’s account shall be:

Withdrawn by the Customer within 30 days (if permitted).
Forfeited if withdrawal is not initiated within the timeframe.
Retained for investigation if linked to suspected fraudulent activity.

10.3.3. The Service Provider reserves the right to maintain records of the Customer’s transactions in accordance with AML/CTF retention requirements (minimum 5 years).

11. FINAL PROVISIONS AND AMENDMENTS

11.1. Amendments to These Terms

11.1.1. The Service Provider reserves the right to amend these Terms at any time to reflect:

Regulatory or legal changes (including updates to MiCA Regulation).
Improvements in security, compliance, or operational procedures.
Changes in service offerings, pricing, or transaction policies.

11.1.2. The Service Provider shall provide notice of material amendments at least 30 days before they take effect, unless:

The amendment is required to comply with mandatory legal provisions, in which case it takes effect immediately.
The amendment relates to service pricing or commissions, where advance notice of at least 7 days will be provided.

11.2. Governing Law and Compliance

11.2.1. These Terms are governed by:

MiCA Regulation (EU) 2023/1114 and relevant European financial legislation.
national laws applicable to digital assets and financial transactions.

11.2.2. Any disputes arising from these Terms shall be resolved through:

Negotiations, where possible.
Arbitration or court proceedings, if necessary, in the competent courts of .

11.3. Severability Clause

11.3.1. If any provision of these Terms is found to be unenforceable or invalid, the remaining provisions shall remain fully enforceable.

11.4. Customer Acknowledgment

11.4.1. By using the Service Provider’s services, the Customer confirms that they:

Have read and understood these Terms.
Agree to comply with all regulatory and compliance obligations.
Accept the risks associated with crypto transactions and financial services.