Legal Compliance Notice

Legal Compliance Notice for TSM Coin


Last Updated: [01/03/2025]

IMPORTANT: THIS DOCUMENT PROVIDES A HIGH-LEVEL OVERVIEW OF THE LEGAL LANDSCAPE FOR DIGITAL ASSETS IN VARIOUS JURISDICTIONS. IT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. THE REGULATORY ENVIRONMENT FOR CRYPTOCURRENCIES IS RAPIDLY EVOLVING. YOU ARE SOLELY RESPONSIBLE FOR ENSURING YOUR COMPLIANCE WITH ALL LAWS AND REGULATIONS APPLICABLE TO YOU IN YOUR JURISDICTION.

TSM Coin (the “Token”) is designed as a utility token within its specific ecosystem. However, regulatory bodies across the globe may view digital assets differently. The following outlines the general compliance stance of the TSM Coin project concerning major jurisdictions.

1. United States of America (USA)

The U.S. has a complex regulatory framework involving multiple federal and state agencies.

  • Securities Laws: The U.S. Securities and Exchange Commission (SEC) applies the Howey Test to determine if a digital asset is a security. While TSM Coin is intended to be a utility token, there is a significant risk that U.S. regulators could classify it as a security. Consequently:
    • TSM COIN IS NOT BEING OFFERED OR MARKETED TO U.S. PERSONS (AS DEFINED IN U.S. SECURITIES LAWS) OR RESIDENTS OF THE UNITED STATES.
    • The Token sale is structured to block participants from IP addresses originating from the U.S. and requires participants to certify they are not a U.S. person.
  • Commodity Futures Trading Commission (CFTC): The CFTC may classify certain cryptocurrencies as commodities, asserting jurisdiction over futures and derivatives markets.
  • Financial Crimes Enforcement Network (FinCEN): Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations are strictly enforced.

COMPLIANCE STATEMENT: TSM COIN IS EXPLICITLY PROHIBITED FOR PURCHASE, SALE, OR USE BY U.S. PERSONS AND RESIDENTS.

2. United Kingdom (UK)

The UK has a proactive regulatory approach under the Financial Conduct Authority (FCA).

  • Financial Promotions Regime: The promotion of cryptoassets to UK consumers is now subject to FCA rules, requiring approvals and clear risk warnings.
  • AML/CTF Registration: Cryptoasset businesses must be registered with the FCA for Anti-Money Laundering and Counter-Terrorist Financing purposes.
  • Potential as Regulated Financial Instruments: Depending on its structure, a token could be considered a Specified Investment or a Security.

COMPLIANCE STATEMENT: THE TSM COIN PROJECT IS NOT CURRENTLY REGISTERED WITH THE FCA. THE TOKEN IS NOT BEING PROMOTED TO THE GENERAL PUBLIC IN THE UK. UK RESIDENTS ARE ADVISED TO PROCEED WITH EXTREME CAUTION AND SEEK INDEPENDENT LEGAL ADVICE.

3. European Union (EU) / Europe

The EU has introduced the comprehensive Markets in Crypto-Assets (MiCA) regulation, which will create a harmonized framework across member states.

  • MiCA Compliance: Once fully implemented, MiCA will regulate crypto-asset issuers and service providers. The TSM Coin project is committed to monitoring MiCA developments and adapting its compliance strategy accordingly.
  • AML/CTF: The Fifth Anti-Money Laundering Directive (5AMLD) and subsequent directives bring cryptoasset service providers under AML obligations.

COMPLIANCE STATEMENT: WHILE THE PROJECT AIMS FOR FUTURE COMPLIANCE WITH EU REGULATIONS LIKE MICA, THE TOKEN IS NOT CURRENTLY OFFERED BY AN EU-LICENSED ENTITY. USERS IN THE EEA ARE SOLELY RESPONSIBLE FOR DETERMINING THE LEGALITY OF THEIR PARTICIPATION.

4. India

The regulatory environment in India is evolving and currently restrictive.

  • Tax Treatment: A heavy tax regime exists, including a 30% tax on crypto income and a 1% Tax Deducted at Source (TDS) on all transactions, which has significantly impacted trading volumes.
  • Uncertain Regulatory Status: While not explicitly banned, the Reserve Bank of India (RBI) has historically expressed skepticism. Cryptoasset exchanges operate under stringent AML/KYC guidelines.

COMPLIANCE STATEMENT: INDIAN RESIDENTS ARE RESPONSIBLE FOR COMPLYING WITH ALL LOCAL TAX LAWS, INCLUDING THE 1% TDS AND 30% INCOME TAX. THE PROJECT DOES NOT PROVIDE TAX ADVICE AND ACCEPTS NO LIABILITY FOR TAX NON-COMPLIANCE BY USERS IN INDIA.

5. Middle East

The approach varies significantly by country.

  • United Arab Emirates (UAE): Dubai (VARA) and Abu Dhabi (FSRA) have established progressive crypto regulatory frameworks. The project views these jurisdictions favorably for future operational expansion.
  • Saudi Arabia: The approach is cautious, with crypto trading largely restricted to qualified investors through licensed entities.
  • Other Jurisdictions: Many Middle Eastern countries have outright bans or severe restrictions on cryptocurrency trading and usage.

COMPLIANCE STATEMENT: IT IS THE USER'S SOLE RESPONSIBILITY TO VERIFY THAT PARTICIPATION IN THE TSM COIN PROJECT IS LEGAL IN THEIR SPECIFIC COUNTRY WITHIN THE MIDDLE EAST. THE PROJECT IS NOT OFFERED IN JURISDICTIONS WHERE IT IS EXPRESSLY PROHIBITED.

6. Asia-Pacific (APAC)

A highly diverse region with varying stances.

  • Singapore (MAS): Has a clear licensing framework for payment token services. The Monetary Authority of Singapore (MAS) assesses tokens on a case-by-case basis to determine if they are securities.
  • Hong Kong (SFC): Has developed a regulatory regime for virtual asset trading platforms and is moving towards retail access under strict conditions.
  • Japan (FSA): Has a well-established licensing system for crypto exchanges. Tokens must be approved before listing.
  • South Korea: Has strict AML/KYC laws and real-name banking requirements for crypto trading.
  • China: Has an outright ban on all cryptocurrency trading and mining.

COMPLIANCE STATEMENT: THE TSM COIN PROJECT IS NOT OFFERED TO RESIDENTS OF MAINLAND CHINA. FOR OTHER APAC JURISDICTIONS (E.G., SINGAPORE, HONG KONG, JAPAN, SOUTH KOREA), THE TOKEN MAY BE SUBJECT TO SECURITIES LAWS. USERS IN THESE REGIONS MUST CONFIRM THE LEGALITY OF THEIR PARTICIPATION BEFORE ENGAGING WITH THE TOKEN.

General Prohibitions

REGARDLESS OF LOCATION, YOU ARE PROHIBITED FROM USING TSM COIN IF YOU ARE A RESIDENT OR CITIZEN OF ANY COUNTRY SANCTIONED BY THE UNITED NATIONS, UNITED STATES, EUROPEAN UNION, OR UNITED KINGDOM (E.G., IRAN, NORTH KOREA, SYRIA, CRIMEA), OR ON ANY LIST OF PROHIBITED OR RESTRICTED PARTIES.

User’s Ultimate Responsibility

By acquiring TSM Coin, you represent and warrant that:

  • You are not a resident of a prohibited jurisdiction.
  • Your acquisition and use of TSM Coin is legal in your jurisdiction.
  • You have obtained appropriate legal, tax, and financial advice regarding the legality and risks of participation.

The TSM Coin project reserves the right to block users from specific jurisdictions at its sole discretion and to implement geo-blocking measures.

Disclaimer: This compliance notice is a living document and may be updated as regulations change. It is not exhaustive and must not be relied upon as a substitute for professional legal counsel.