[Consultation] Drafting Terms of Use for Cryptocurrency Exchange Utilization

Law firm Veat assisted A, a company operating a virtual currency exchange, in drafting the terms of service.

A, which utilizes the company's virtual currency exchange IT system, requested Law firm Veat to draft its terms of service. 

Law firm Veat advised A to clearly define the distribution of authority and responsibility for customers using the virtual currency exchange, and provided assistance in drafting the terms of service, including obligations under the “Act on Consumer Protection in Electronic Transactions and Business,” specifically the “Obligations of Service Providers and Service Sellers.”

The terms of service are structured to ensure that when a business enters into a contract with a customer, the customer is clearly informed of the contents of the terms of service using “generally expected methods” and explained “important content stipulated in the terms of service” in a way that the customer can understand (Article 3(2) and (3) of the Act on Consumer Protection in Electronic Transactions and Business).

As interest in virtual currencies, such as Bitcoin, has increased, and the number of users of domestic virtual currency exchanges is also rising, companies operating related businesses such as virtual currency and Bitcoin should proactively prevent potential disputes and issues by drafting terms of service that clearly define the rights and responsibilities of customers.

If you need legal assistance with the drafting of terms of service and operation of a virtual currency exchange, please feel free to contact Law firm Veat at any time.

Thank you.

Law firm Veat.