1. Important warning
This Digital Asset Risk Warning is provided by SGCPAY (AUS) LIMITED (ABN 61 662 299 434) ("SGCPAY", "we", "us" or "our"). Digital assets are high-risk and are not suitable for everyone. You should not use digital-asset services, or commit funds to digital assets, unless you understand the risks and can bear the loss of the entire amount involved.
This warning is general in nature and does not constitute financial, investment, legal, or tax advice. It should be read together with our Terms and Conditions and our Risk Disclosure Statement.
2. Our regulatory status for digital assets
SGCPAY is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) on the Digital Currency Exchange (Virtual Asset Service Provider) Register, registration number DCE100840582-001. This registration relates to anti-money-laundering and counter-terrorism-financing obligations.
Registration with AUSTRAC does not mean that digital assets are regulated in the same way as bank deposits or licensed financial products, and it does not guarantee the safety or value of any digital asset. Digital assets are generally not covered by government guarantee or compensation schemes.
3. Price volatility and loss
The value of digital assets can be extremely volatile and can fall sharply, including to zero, over very short periods. You may lose some or all of the value of any digital asset you hold or transact in. Prices can be affected by market sentiment, liquidity, technological developments, regulatory changes, and other factors, many of which are unpredictable.
You should never commit funds to digital assets that you cannot afford to lose.
4. Irreversibility of transactions
Digital-asset transactions are generally irreversible once confirmed on the relevant network. If you send assets to an incorrect or fraudulent address, or authorise a transaction in error, it may be impossible to recover them. You are responsible for verifying transaction details before you confirm them.
We may be unable to reverse, cancel, or recover a transaction after it has been broadcast to a network.
5. Custody, keys, and security
Access to digital assets typically depends on credentials or private keys. If these are lost, stolen, or compromised, the associated assets may be permanently inaccessible or may be taken by a third party. You are responsible for keeping your access credentials secure.
Where assets are held on your behalf, the arrangements that apply, including how those assets are safeguarded, depend on the specific product and any partner involved, as described in our Customer Funds and Safeguarding statement.
6. Technology and network risk
Digital assets depend on complex technologies, including blockchains, smart contracts, and third-party infrastructure. These technologies can contain bugs or vulnerabilities, can be subject to attacks, and can experience congestion, forks, or failures. Such events can affect the availability, value, or transferability of a digital asset.
Confirmation of a transaction on a network does not guarantee that it constitutes final bank settlement, which occurs only when funds are confirmed as cleared and available through the relevant financial institution.
7. Fraud, scams, and market abuse
The digital-asset sector attracts fraud, scams, and market-manipulation schemes. Be cautious of offers that appear too good to be true, of pressure to act quickly, and of requests to move assets to unfamiliar addresses or platforms. We will never ask you to disclose your full credentials, and you should be alert to impersonation attempts.
If you suspect fraud involving your account or our services, contact us promptly via the contact form on our website.
8. Regulatory uncertainty and availability
The regulation of digital assets is evolving and differs between jurisdictions. Changes in law or regulation may affect whether, and how, digital-asset services can be provided to you, and may occur at short notice. Some services are subject to eligibility, jurisdiction, and further regulatory approval, and may not be available in your location.
You are responsible for ensuring that your use of digital-asset services is lawful in your jurisdiction.
9. Before you proceed
Before using any digital-asset service, make sure you understand the specific asset and service involved, the risks described here and in our Risk Disclosure Statement, and the fees that may apply, as set out in our Fees and Charges document. Consider seeking independent professional advice.
If you have any questions about digital-asset risks, you can contact us via the contact form on our website.