Terms of Service
Last Updated: December 2024
Please read these Terms of Service ("Terms") carefully. These Terms govern your access to and use of the StudyCoin platform, including our decentralized autonomous organization (DAO) features, educational content, and the STC Token ecosystem.
By accessing or using the StudyCoin platform, you agree to be bound by these Terms and acknowledge that you understand the inherent risks associated with Virtual Digital Assets (VDAs) and the specific regulatory environment in India.
1. Acceptance of Terms and Status of StudyCoin
1.1 VASP Status and Compliance
StudyCoin is an entity that facilitates the transfer and safekeeping of Virtual Digital Assets (VDAs) and is therefore classified as a Virtual Digital Asset Service Provider (VASP) and a Reporting Entity under the Prevention of Money Laundering Act (PMLA), 2002, and subsequent notifications in India.
1.2 Acknowledgment of Regulation
You acknowledge and agree that your use of the platform is subject to the continuous, mandatory compliance obligations of StudyCoin under the PMLA and the Financial Intelligence Unit-India (FIU-IND) regulations.
2. Services Provided
2.1 Educational Platform
StudyCoin provides a platform for community-governed educational services, including access to courses, learning modules, peer-to-peer mentoring, and the issuance of Proof-of-Skill credentials.
2.2 VDA Services
Our services include the issuance, distribution, and administration of STC Tokens (our VDA), the execution of token swaps for marketplace discounts, and the provision of financial services related to the VDA offering (the "Learn-to-Earn" mechanism and governance).
2.3 Hybrid Governance Model
You acknowledge that while StudyCoin aims for decentralized governance via the DAO, certain critical functions—particularly those relating to VDA custody, transfer, and regulatory reporting—are subject to centralized administration by the legal entity for the sole purpose of ensuring compliance with PMLA and FIU-IND requirements.
3. User Obligations and Regulatory Compliance
3.1 Mandatory KYC and AML
To access, earn, hold, or transfer STC Tokens, participate in governance, or utilize the VDA-linked marketplace, you must complete our mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. This involves providing accurate and verifiable identity information (e.g., Aadhaar number, government-issued IDs, and proof of address).
3.2 Transaction Monitoring and Reporting
You consent to the continuous screening and monitoring of all your STC Token transactions by StudyCoin to fulfill our mandatory transaction monitoring and reporting obligations to the FIU-IND. StudyCoin reserves the right to suspend or freeze transactions if they are deemed suspicious or fail to meet AML requirements.
3.3 Accuracy of Information
You agree to provide true, accurate, and current identity information. Providing false or misleading information constitutes a breach of these Terms and may result in immediate account suspension and legal reporting.
4. Terms Governing STC Tokens (Virtual Digital Assets)
4.1 Unregulated and High Risk
You acknowledge and agree that STC Tokens are Virtual Digital Assets (VDAs). Cryptocurrencies and VDA products in India are unregulated and can be highly risky. You understand that there may be no regulatory recourse for any loss arising from transactions involving STC Tokens.
4.2 Not Legal Tender
STC Tokens are not recognized as legal tender in India and cannot be used as a replacement for the Indian Rupee. They are a utility and governance asset within the StudyCoin ecosystem.
4.3 Tax Liability (Crucial Warning)
You are solely responsible for all tax liabilities arising from your use of the platform. You acknowledge the current Indian VDA taxation structure, which imposes a flat 30% tax on gains from VDA transactions, regardless of your personal income or profession. Additionally, a 1% Tax Deduction at Source (TDS) may apply to VDA transactions above certain thresholds. You agree to maintain detailed records for tax compliance and indemnify StudyCoin against any tax-related claims.
4.4 Token Earning and Utility
STC Tokens are rewarded for educational activities. Their value is based on ecosystem utility (governance rights, marketplace access) and not guaranteed monetary value.
5. DAO Governance and Voting Rights
Your possession of STC Tokens grants you voting rights on proposals related to curriculum, treasury allocation, and platform upgrades. You understand that:
- •Voting does not guarantee outcome: All proposals are subject to quorum and majority requirements defined by the smart contract.
- •StudyCoin is not liable for outcomes: StudyCoin is not liable for any financial or operational loss resulting from decisions made by the DAO community through the voting mechanism.
6. Termination and Suspension
StudyCoin reserves the right to immediately suspend or terminate your account and access to VDA services without prior notice if:
- •You violate any provision of these Terms, particularly those related to KYC/AML and fraud.
- •We are required to do so by a court order or directive from a regulatory authority, including the FIU-IND, to comply with our PMLA obligations.
7. Governing Law and Dispute Resolution
These Terms shall be governed by and construed in accordance with the laws of India. Any disputes arising out of or relating to these Terms will be subject to the exclusive jurisdiction of the courts in India.