Terms of Service - Comparison of popular crypto exchanges
Image: Terms of Service - Comparison of popular crypto exchanges
It seems every popular exchange can profiled as good for certain things only based on their ToS.
- For a review post about smaller exchanges for 2018 head here
- Original (updated) review post with ratings is here
Kucoin is the “new binance”, the next altcoin exchange where traders flock to even though Binance opened registrations again and, actually, one of the more reliable old exchanges OKEx added a ton of altcoin markets. Kucoin is the exchange where to trade brand new alcoins though - an early adopter of promising crypto and a lot of shitcoins. The exchange operates from Hong Kong.
There is nothing unusual in the Kucoin ToS - you need to be 18 or older, they have some Restricted Locations where traders are not welcome and if you breach their ToS they can shut down your account without prior notice. Actual list of restricted locations is nowhere to be found in their ToS though.
Applicable Law; Arbitration - No class actions but there can be a dispute. The are limited ways to seek relief.
Limitation of Liability - No liability for loss of profits or loss of data, whether in an action in contract, tort (including but not limited to negligence) or otherwise.
The ToS of Binance, the Buffet’s Shitcoin Buffet, includes the usual (only adults, you are responsible for your accounts security, they will freeze your account without notice when they see fit) but there is also a section where you agree with Binance sharing your information with governmental authorities.
Scope and Limitation of Liability - No warranty, including but not limited to applicability, free from error or omission, continuity, accuracy, reliability or fitness for a particular purpose. Also no liability with regards to what you trade there - Binance can list a scam, knowing it is a scam, without any liability.
Bitfinex does the usual stuff too. There is one point that probably many aren’t aware of:
Inactivity Fee - When you have not traded or engaged in funding for a year but you hold equity on the exchange, Bitfinex will charge $25.00 per year, with or without notice to you. After two years without login, Bitfinex has the right to seize assets of unverified customers. For verified customers they will seek a way to return them.
Limitation of Liability & Release - No liability or responsibility, not even related to any failure, malfunction or decision on behalf of Bitfinex.
No Class Proceedings - No class actions.
Again, the usual things - be an adult, be aware of the risk, take care of your account’s security. On Bitstamp you need to verify your identity and according to the ToS you are obliged to keep the information up to date. You can only have one account, it can be terminated without notice.
Sometimes when you make a transaction with a bank Bitstamp requires additional information about you. If you decline to provide the info, your account will be terminated.
Another perk is in the ToS you agree not to engage in “illegal gambling operation” so you probably shouldn’t fund a bitcoin sportsbook directly from your Bitstamp account.
Bitstamp will share your information with law enforcement, data protection authorities, government officials, and other authorities. For US people, they will share traders’ personal information with the IRS - name, address, e-mail address, trading information, banking details.
Availability of services - No warranties.
Limitation of Liability - Bitstamp actually can be held liable for losses from negligence: “Bitstamp will not be held liable for any damages, loss of profit, loss of revenue, loss of business, loss of opportunity, loss of data, indirect or consequential loss unless the loss suffered arising from negligence or wilful deceit or fraud.”
On Kraken too you need to be an adult, resident of a nonrestricted country and aware of the risks.
There is a limitation of margin funding for US residents - maximum funding duration is 28 days.
DISCLAIMER OF WARRANTIES - No warranties.
LIMITATION OF LIABILITY - No liability, including but not limited to negligence.
APPLICABLE LAW; ARBITRATION - Similar as with Kucoin, there are limited ways to seek relief, and no class action.
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About the author
Written by KarlVonBahnhof
KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.
Opinions are author's own.