Planned hard fork and Company correspondence policy for newly created cryptocurrency

Our company’s hard fork policy applies to blockchains being liable to hard fork, or cryptocurrencies have been created by hard fork (“new cryptocurrency”)

1. About Support for hard fork 

(a)The company strives to gather information relating hard fork planning

(b)The company strives to provide necessary information about the hard fork contents, the core entity for planning the hard fork, the intention and its forecast effects of the hard fork or the risks that could occur to customers etc. for the appropriate customer in order to come to a settlement for the customers assets of their cryptocurrency at the time of the hard fork occurrence.

(c)The company will take necessary countermeasures for customer preservation and for transactions with the customer. In case of any kinds of obstacles that may occur to the customer assets preservation or at a time of transaction with the customer, we may close the system temporarily in the lead-up to the hard fork .

(d)We will give a prior notice before conducting any measures as noted in item (c). However, this does not include any cases of an emergency system close. In case of an emergency, we will quickly provide the information of the close after an appropriate emergency counterplan has been executed.

(e)The company will give notifications through our homepage, email and public social network services about temporarily business shutdowns, and any resumptions of business shutdowns.

(f)The company will not bear any responsibilities to losses the customer may suffer that could occur due to cryptocurrency price fluctuations as a result of taking measures caused by the occurred hard fork as described in item (c).

2. Granting new cryptocurrency to customers

The company’s judgement standards for whether the customer will be granted a new cryptocurrency or not is listed as follows. If the requirement of the following each item are not met for security and stability, or if granting and handling procedure is judged as problematic based on the company’s own discretion, we will not grant the new cryptocurrency

“Granting new cryptocurrency criterion”

A. About security:

・ Protection for replay attack is installed in the new cryptocurrency mechanism. 

・The new cryptocurrency source is an open source, and the wallet software can be accessed and downloaded from the official homepage

・Confirming the new cryptocurrency source, affirming that user assets are not used without authorization. 

B. About Stability

・Confirm that the new cryptocurrency, and block on the blockchain  have been created stably for a certain time period.

If the criterion standards noted above are met, the procedure for granting new cryptocurrency to the customer is as the following.

(a) In principle, if the concerned cryptocurrency value is deemed partially transferred to the new cryptocurrency, the company shall grant the new cryptocurrency to the customer. (if transferring all of the old cryptocurrency value to the new cryptocurrency, the old cryptocurrency will be taken over by the new cryptocurrency, so there will be no new currency.) In case of multiple new cryptocurrencies are generated due to hard fork, the company will judge whether or not it is necessary to grant each new cryptocurrency. Even if the company grants a new cryptocurrency to the customer, the new cryptocurrency may not be handled as cryptocurrency by the company.

(b) In case of as mentioned in the previous item, the company may issue the customer in Japanese Yen equivalent to the new cryptocurrency value instead of granting the new cryptocurrency.

(c) With the exception of acquiring a new cryptocurrency in advance for granting the customer or taking measures as noted above, the company will use the new cryptocurrency created by the customer on behalf of the customer. However the company will not acquire or dispose of the new cryptocurrency.

(d) When the company recognizes the possibility of a new cryptocurrency being generated due to a hard fork currently handled by the company, and that the value of the cryptocurrency held by a customer will be affected by it, the company will endeavor to publicize and the concept the concerned hard fork plan, and the contents of the new cryptocurrency generated by the hard fork, concerning the granting of the new cryptocurrency and customer notifications etc.

(e)The company may charge the customer a handling fee associated to actual operation along with taking necessary measures for customer preservation costs, other than granting new cryptocurrency to customers.

3. Special requirement items on Bitcoin Loan

(a) In case if you are borrowing cryptocurrency loan from Bitcoin Loan at the time of a hard fork occurrence, the new cryptocurrency after the hard fork becomes a property of the company since it branched from the Bitcoin Loan that is lent by the company.

(b) If the company generates a hard fork when the customer is borrowing cryptocurrency from Bitcoin Loan, the following risks may occur. The company will not be liable for any losses occurring due to the following risks.

  • The customer will not be able to withdraw money or cryptocurrency from the date of system shutdown associated with a hard fork until the customer repays the Bitcoin Loan after the hard fork
  • If our company’s appraised value after undivided forking is evaluated negatively, the ratio of the total assets of Bitcoin Loans borrowed by customers may be reduced by 110% , and loss cuts may be executed. Also, losses may exceed the assets you have deposited with us. 
  • As a principle, no deadlines are set for reimbursement purposes for Bitcoin Loans. However, the company may set a deadline for payments if necessary. If there is no reimbursements by the deadlines set by the company, the customer will be forced to repay with other assets with any other method. In this case, it shall be clearly stated in the Terms of Use or in other contracts that the company has signed with the customer in advance, and let the customer know

4. Management of cryptocurrency related transactions etc. concerning new cryptocurrency.

(a) If the company uses the new cryptocurrency as a cryptocurrency concerning cryptocurrency transactions (including hot wallet services for with new cryptocurrency), internal examinations and other procedures will be conducted in the same manner as newly handled cryptocurrencies, and decide its eligibility.

(b)The company will not resume cryptocurrency trading associated with new cryptocurrencies until the customer has been granted the new cryptocurrency, or passed other executing appropriate evaluation measures.

July 22, 2019

BtcBox Co.,Ltd.
Cryptocurrency Exchange Business Registration No. 00008
JVCEA Membership number 1008