Project HAZZA IC 01112017 v0 Paper_24062019_v2.1_Eng.pdf · 2019-11-28 · We have developed the...

A Leading Cross-border Mobile Crypto Payment Processor &

Crypto2Fiat Purser in Asia Pacific

June 2019 Version 2.1

WHITEPAPER

www.capitalst.io

Copyright 2019 © Capital Digital Assets Limited and/or its affiliates. All rights reserved.

CSPay is a new cryptocurrency, digital wallet and exchange platform that connects merchants, cross border payment processors, financial institutions and consumers for providing the ability to seamlessly trade and process crypto and fiat currencies and facilitating cross border transactions. CSTO tokens are ERC20 tokens based on the Ethereum blockchain and are the ubiquitous transactional tokens for the exchange of cryptocurrencies and fiat currencies. It is the token that drives each transaction, payment and service in Asia Pacific on the CSPay Platform. We have developed the CSWallet, CSExchange, APIs, account management app, Merchant Point of Sale (PoS) payment gateway and bring the adoption of crypto payment into the mainstream in Asia Pacific.

CSPAY CSTO

Borderless & Frictionless Payments Copyright 2019 © Capital Digital Assets Limited and/or its affiliates. All rights reserved.

Hong Kong Japan Korea APAC

Table of Contents

1. Executive Summary

2. Introduction

3. CSPay Platform

4. CSTO Token

5. CSTO Token Economy

6. Roadmap

7. Corporate Background

8. Disclaimer & Risks

2

3

8

14

16

24

25

28

2

Copyright 2019 © Capital Digital Assets Limited and/or its affiliates. All rights reserved. Page 1

Executive Summary

3

Chapter 1


Many technologies have arisen in the last few years which have changed the way we pay, or are changing the way we pay. These technologies have swept away the payment systems that were in place before, or are in the process of so doing. Technologies such as blockchain, artificial intelligence enable cryptocurrencies which have changed and are changing the global payment processing ecosystem. Global payments revenues increased to $1.9 trillion in 2017.1 McKinsey forecasts that payments would become a $2 trillion business by 2020. As expected, 2017’s market performance was enormously vigorous that its 11 % growth rate nurtured by continuing strength in the Asia-Pacific. The global revenues of global payment are poised to exceed the $2 trillion threshold in 2018, and to proceed towards $3 trillion by 2022. The prominence of payments in the global financial services system has undeniably hoisted over the past decade. Even against this backdrop, however, results in 2018 are remarkable. Although the Asia-Pacific region—including especially China—has unsurprisingly been the powerful and expansive growth engine, there is no shortage of ways, both channel-based and geographic, for firms of all varieties and countries to go after. In fact, the strong growth contradicts an industry in the middle of significant disruption, in which innovative and redesigned business models give rise to competitive threats and opportunities. Cross-border Payments Market has relatively minor share of the existing revenue, but cross-border operations bring disproportionate force caused by their significant margins and connection to lucrative wide-ranging corporate banking relationships. The significance of ecommerce and the repositioning toward digital payments methods has been well documented in these years. The imperative here is for existing firms to proactively streamline strategies to better adapt to market realities, and, preferably, to seek common ground for collaboration with fintechs to generate even more powerful offerings. Up to now, digital disturbance has been focused on specific segments and - and digital payment of Asia Pacific in particular. The Capital Digital Assets Company sees the pioneering of this alternative which will allows throngs of consumers, tourists and merchants to enjoy the advantages of cryptocurrencies as its mission, as its goal. We aim to solve the distressful and bulky cross-boarder payment situation with CSPay Payment Solution. We are committed to be the future of the mobile crypto payment solution provider for the Asia Pacific and the globe, wherever and whenever.

Page 2

Introduction

4

Chapter 2

2.1 Market Overview

Copyright 2018 CSPay --- All Rights Reserved


High Potential of Cross-border Mobile Payment The thriving fundamentals of cross border payment including proliferating cross-border business activity and digital commerce growth. The growth of the payments element also refers to the imperative for financial institutions to develop and continually refresh sound payments strategies so stay competitive a market being transmuted by new competition, technology, and customer demands. It is no wonder that the global payments revenue growth is dominated by the Asia-Pacific region, as has been remained true for several years. At greater than $900 billion, the APAC region now be responsible for nearly half of global payments revenue.2

Mobile Payment is a dynamic industry continues to lead the way and Asia-Pacific dominates the global payments revenue pool. Superficially, cross-border payments might appear to comprise a low single-digit share of global payments revenues. Despite that, as soon as liquidity factors like net interest margins are excluded, this growing category of transactions make up a larger share of the pie (approximately one-quarter) even more competition from newcomers and new solutions. Cross-border transactions also continue to create extraordinary high margins for payment services. Comparing payments revenues across regions, payments revenue per unit of GDP in Asia-Pacific is 50 to 60 percent higher than for Europe and North America.3 What’s more is that the share of electronic payments transactions in Asia-Pacific is 60 to 65 percent lower than in Europe and North America.4 In other words, payments are remarkably high-priced for the economy in Asia-Pacific. Considered the cost of processing cash and check payments are higher than the economy in Europe and North America that consumers and businesses in Asia Pacific are paid more payment processing fee.

Page 3


Mobile Payment Market Growth Even With Pressures While the overall number of transactions continues to soar, the real revenue engine is the electronification of transactions (to be specific quit from cash) which more than offsets the descending pressure on fees. In the light of the Asia-Pacific region is responsible for more than 60 percent of the global population, it is not surprising that it is account for two-thirds of global transactions. The fact that Asia-Pacific still not in place with other regions in overall electronification at merely 21 percent shows the region’s continuing growth potential. The quit from cash, as observed in markets for instance China, will serve as the sole-largest source of global electronification. The portion of electronification in China has increased more than ten-fold in 2017. The electronification trend further contributes by the blooming popularity of alternative payments solutions. McKinsey forecasts that the global digital commerce volume overreached $3 trillion in 2017, and will more than double by 2022.5 Asia-Pacific already consists over half of this $3 trillion and, owing to the rapid-growing Chinese market, will increase its share to nearly 70 percent by 2022. Mobile commerce, including in-app payments and mobile browser payments, is the presiding factor pushing robust digital commerce growth, owing to rising smartphone acceptance, an increasing move towards online shopping, and advancements in network bandwidth. As of 2017, mobile commerce makes up 48 percent of digital commerce sales globally, and is forecasted to hit 70 percent by 2022 (that is tripling to $4.6 trillion).5

Merchants and consumers alike are increasingly accepting app-based commerce and in-app payments. Globally speaking, mobile apps made up more than 30 percent of total digital commerce volume in 2017, and are anticipated to continue powerful growth covering all regions. Digital wallets have added approximately 40 billion to global payments revenues in 2017.6

The position for in-store commerce differs significantly by region and country. In countries with NFC infrastructure, tap-and-pay will steer growth. Unlike the US, in emerging markets like Asia Pacific, the launch of new payments solutions will alter how people pay. Even without popular merchant acceptance will remain a hurdle, together with the continued percentage of consumers who do not understand how to make use of their mobile phone to pay at the point of sale. China steers on this battlefield with 40 percent of in-person paying out already on mobile digital wallets. Nevertheless, different from the US, nearly all of this is on closed-loop systems like Alipay and WeChat Pay.

Page 4

Continued Growth Opportunities in Asia Pacific’s Payment Market McKinsey has predicted that the global average annual payments revenue growth of 9 percent through 2022 construes to around $1 trillion of net new revenue within easy reach of financial institutions and other financial services firms. It is worth noting that almost two thirds of new revenue will be generated in Asia-Pacific. Approximately half of this new global revenue will come out from transaction growth (both domestic and cross-border) and related fees, unlocking opportunities for substantial firms in the increasingly open banking landscape. By 2022 Asia-Pacific will join EMEA and North America in producing the majority of its payments revenue through fees. Cross-border commerce has continued on a nourishing growth path. Despite price pressures from growing competition, cross-border payments of all types remain far more economically irresistible for merchants and payers. Cross-border Consumer-to-Business (C2B) Payments Cross-border consumer-to-business (C2B) payments are increasing at roughly 20 percent owing to growing expenditures on items like tourism and rising global consumption. Cross-border e-commerce is a growth winner that retail cross-border ecommerce sales aggregated $300 billion in 2015 and are poised to go beyond $900 billion by 2020, amount to a 25 percent annual growth rate.


7

2.2 Problem Statement 行業問題論述



Consumers • Cross-border crypto payments are not accepted anywhere, especially in Asia

Pacific even in first tier international cities like Hong Kong, Tokyo and Seoul. • Inconvenient to manage and spend Bitcoin with existing digital wallet, and no

way to turn Bitcoin into preferred APAC fiat currency. • Without any leading Asia Pacific player provides seamless cross border

shopping and spending experience combined with virtual marketing scheme. • Application of Crypto Payments tap-and-pay are underdeveloped in Asia Pacific.

Merchants • Accept Crypto payments are not get paid and settled in preferred fiat currency

in a timely manner. • Unable to receive funds directly to corporate bank account with zero price

volatility or risk. • Lack of trusted payment solution provider in Asia Pacific.

Digital Wallet Users • Short of reliable user-friendly all-in-one digital wallet and exchange with Asia

Pacific strong coverage. • Have insufficient trustworthy and convenient digital wallet in Asia Pacific

provides comprehensive services including crypto buy / sell / cash out / transfer / deposit / cross border tap-and-pay

Page 6

8

2.3 CSPay Crypto Payment Processing Solution



What is CSPay? CSPay is a decentralized crypto payment solution that provides users with specialized transactional tools to enhance the use of cryptocurrencies. Founded in mid 2018, our global team of seasoned crypto developers and e-commerce specialists have joined together in expanding the infinite possibilities of crypto payment processing that blockchain technology has to offer. CSPay Alternative Payment Solutions Open New Horizons CSPay provides an enhanced payments experience in the SME linked B2C payments space which will involve linking payments to purchase orders or embedding a link for payments to connect with a range of accounting systems, providing the ability to collect cross boarder payments from global customers. It is a tripartite system, that consists of CSWallet, CSPay Payment Gateway and CSExchange. The CSWallet, a secure platform with access procedures that comply with financial institutions’ security standards, is a multi-cryptocurrency wallet DAPP for smartphones which handles transfer, receipt and storage of cryptocurrencies. To register a CSWallet, users goi through a quick and easy registration process, which will allows our users to reinstate wallet access if login or password get forgotten. The CSPay Payment Gateway, integrated with the CSWallet, permits the receipt of payments, borderless transfers and payments, with all the advantages of cryptocurrency such as security, speedy and low costs. It is an all-in-one point of sale (PoS) solution, which combines a bank terminal, a cash register and a payment terminal, the system allows both enterprise-integration and merchant customization. It allows us to expand the global PoS Network. The CSExchange manages the buy/sell of crypto via OTC services. The sale proceeds of crypto can be cashed out through various options while the payment of crypto can be settled by different supported fiat currencies.

Page 7

CSPay Platform

Chapter 3

3.1 CSWallet

The Global Decentralized Platform Linking Traditional Cross Border Payment Markets

Crypto Buyer

Marketers

Crypto Vendor Consumers

Digital Wallet Users

Crypto Exchange User

Payment Processing Switcher

Bank

SVF Licensees

Money Exchange

Merchants

Payment Processors

The Decentralized

Cross Border

Mobile Payment

Marketplace

去中心化跨境移動支付環球市場



• The only mobile wallet in Asia Pacific that remunerates with crypto. Whenever you pay! Pay with a touch of your phone plus say goodbye to counting bills or looking for any form of payment cards.

• Use crypto or JPY or HKD or KRW. Just take your mobile phone and go paying! • Secure cross border payment everywhere. Safe. Speedy. Low Cost. • Speedy cross border payment collection everywhere. Secure. Quick cash flow.

Transparent. • Send crypto to family & friends easily. Make instant transfers anywhere. Trouble-

free. • Make easy deposits for BTC sales. Transfer sales proceeds to your designated

account or prepaid card or money exchange in a few simple steps. • Pay in a way that pays off via exclusive CSPay Loyalty Program. Get rewards

whenever you pay every time.

Page 8

10

3.2 Functions & Features

The CSPay Platform with its CSTO is a new cryptocurrency empowered by blockchain technologies and smart contracts. Highlighted functions of the CSPay Platform are illustrated as appended:~


OTC Trading Services Buy/Sell BTC Services

Digital Wallet Transfer & Storage Services

BTC Cash Out Services (Designated Bank Account/Money Exchange Store/ Prepaid Card)

Cross-Border Mobile POS Payment Services

Borderless & Frictionless Mobile Payments

Page 9

11

Feature Consumers Incentive Scheme & Virtual Token Reward Marketing Program

Consumers cherish paying with reward and prize. With the assistance from blockchain and smart contract, consumers incentivization becomes easy, simple, swift, sincere and straightforward. Incentive, reward or prize in the forms of CSTO Token will provide by the offeror and hold on the decentralized CSPay Platform, consumers will entitle to receive the reward (directly store on their integrated wallet) once the predetermined criteria under the smart contract are met.

Incentive scheme will be provided to loyal consumers which enabling monetization with consumers’ neccessity, that is, spending. By paying bills, sharing with friends and provide payment reviews to fellow consumers, consumers obtain reward. The trustworthy, open and secure smart contracts can verify the authenticity of consumers, merchants and marketers. The blockchain system ensures no one can be abusive within the decentralized ecosystem. In this case, both consumers, marketers and merchants will be freed from the traditional centralized cross border payment distribution setting.

Consumer retention is pivotal to the repetitive consumption. Merchants can choose to incorporate marketing tools supported by smart contract technology available on the CSPay Platform for discount, promotional scheme or reward.

For promoting greater loyalty and engagement within an active consumers base, virtual marketing program will be launched by the Platform. Special marketing campaigns and contests can raise by particular merchant, safer and cheaper more than ever. Merchants can reach new consumers with transparent marketing tools offered by the CSPay Platform. By giving consumers a greater voice, all aims to enhance mobile payment engagement and consumer retention.


Capital Share Token (CSTO Token) is designed to be the medium of the CSPay

Platform. The CSTO Token is built on the Ethereum network and complies with

the ERC-20 standard. Its value reflects user demand and the intrinsic value of

products and services within CSPay Platform.

CSTO Tokens have various core utilities:~

Payment for ~

1. Cross Border Mobile Payment (Consumer)

2. Cross Border Payment Processing (Merchant)

3. Crypto OTC Trading Service

4. Crypto Cash Out Service

5. Exchange of e-Voucher (to Enjoy Discount!)

6. Exchange of third party crypto

7. Virtual Marketing Reward

8. Other Premium Services provided by the CSPay Platform

3.3 CSTO Utilities


3.4 Technology Readiness

13

CSPay Proprietary Blockchain

An independent blockchain will be built by CSPay to perform real-time transaction and settlement of Cross Border Mobile Payment in Asia Pacific. With direct integration with the off-chain trading portal, CSPay enables peer-to-peer 24/7 global transaction. Every time a block is created, it does not overwrite the previous ones. Only new block adds to the chain which will be deemed as the updated version. Data transparency is available to those who possess private key, a password to enter the chain, and a full transaction history is ready at fingertips. An Ethereum node will begin running a preserved smart contract when it awards with a ‘message’ and sufficient ‘gas’ (as transaction fees) from a user, an ‘oracle’, or another smart contract. An ‘oracle’ means an input produced by an electronic device which observes and identifies physical-world events, which could be as basic as a pre-set time or someone opening a window in a particular location let under a smart contract.

Trustworthy Public

Distributed Ledger

Transaction Transaction

Transaction

Hash Hash Hash

Owner 1’s

Signature

Owner 2’s

Signature

Owner 2’s Private Key Owner 1’s Private Key Owner 3’s Private Key

Owner 2’s

Public Key

Owner 3’s

Public Key Owner 1’s

Public Key

Owner 0’s

Signature


14

3.5 Main Technology Features of CSPay Blockchain

Features Details

CSPay Blockchain

• DAPP Wallet • Delegated proof of stake algorithm • Cryptographic signature and hash functions • Commitments with Ethereum blockchain • Data model: specification of transaction, accounts, addresses, orders,

order book • Target rate of forging, pre-mining if any, distribution schedule,

rewards & fees

Open Source SDK

• Open Measurement Software Development Kit • Implementation protocol • Support trustworthy transaction integration with the Platform

Node Software

• Peer to peer discovery & seed nodes • Protocol implementation • Account maintenance • Order matching and execution engine • Block validation • Blockchain maintenance, persistence and rollback • Account Database Broker, Transaction Database Broker • Peer synchronization and data priming

Minting

• Proof of Stake (PoS) implementation • Block submission & acknowledgement

Integrated Wallet

• Random Seed Generation • Hierarchical addresses • Multi-signatures addresses • Cryptocurrencies storing • Connection with CSExchange • Encoding/Decoding • Cold Storage • Transaction Manager • Coin and balance maintenance • Transaction History

API • Merchant API and order placement for algorithmic trading

Web App

• Account/User management • Intrusion Prevention and Detection Security System • Trading application • Keychain • Integration with hardware wallets

Block Explorer • Display block content, transaction details and current order book • Search by transaction, country, fiat currency


Chapter 4 4.1 CSTO Token Distribution


Total Supply The supply of CSTO tokens will be created from the start with a total of 5,000,000,000.

Token Quantity

Percentage

Token Sales

(30th Sep 2018 ended)

2,000,000,000

40%

Founders

1,500,000,000

30%

Early Bird Merchant &

Consumers

500,000,000

10%

Strategic Partner

250,000,000

5%

Advisory and Early Supporters

500,000,000

10%

Team

250,000,000

5%

Page 14

4.2 Use of Proceeds

The proceeds will be used to develop the System and the supporting technology that is required to provide the speed, stability, accessibility and security for a world class cross border mobile payment platform. CSPay Platform will invest in infrastructure, data science, security and other trading functions that empower all the users to trade with privacy, confidence and security.

4% 5%

5%

8%

5%

55%

18%

USE OF FUNDS

Legal & Compliance Marketing

Business Development Operation

Contingency Platform Building

Ecosystem Development


5.1 CSPay Token Economy

Chapter 5

Industry participants (especially consumers and Wallet Users) can earn and spend CSTO Token under various way within the CSPay Platform’s ecosystem. Certain core attributes of the CSPay Platform aim to supply CSTO Tokens to consumers and users by incentivizing them for paying, sharing, trading or having good quality comment. In the meantime, merchant can obtain economical benefits in the form of CSTO Token through virtual market scheme to the consumers while using the Platform to expand its consumers basis by spending CSTO Token for conducting virtual marketing campaign. Appended is the illustration of the cyclical token economy of CSPay:~


Blockchain Core

Cross Border Mobile Payment

Crypto Exchange Services

OTC Services

Virtual Marketing Campaign

Digital Wallet Services

Crypto Cash Out Services

Consumers

Merchant

Blockchain Validation

Cross Border Mobile Tap-and-Pay

Smart Contract Verification

Crypto Transfer & Storage

Cross Border Payment Processing Services

Cross Border Mobile Tap-and-Receive

Digital Wallet User

Exchange Service User

Buy/Sell/Cash Out

Page 16

18

5.2 A Brand New and Blockchain-Powered Economic Model for Cross-Border Mobile Crypto Payment Networks

This chapter describes the CSPay economy, highlighting the key design criteria, the architecture and its implications on the token’s price dynamics. It exemplifies the token economics of CSPay --- the first platform in the ecosystem to utilize the CSPay cross border mobile crypto payment infrastructure and token. A few business organizations dominate cross border mobile payment in Asia Pacific. Their strength depends on millions of consumers, merchants and payers participating and paying bills, but only a small fraction of the hundreds of billions in enterprise value that they have assembled retrocedes to those that constitutes the cross border mobile crypto payment network, and grow it. CSPay’s open and decentralized cross border mobile crypto payment economy, running on a crypto-token, is designed to reshape cross border mobile payment economics that~ (1) Contributors Earn Tokens – Merchants, Consumers, Payers, Digital Wallet Users and Marketers algorithmically and transparently earn tokens in proportionate to the value generating by themselves, achieving a more unprejudiced distribution of the value created on a cross border mobile payment network. (2) Stake in the Network and Adjoined Incentives --- By earning in tokens, consumers get a strong personal stake in the network they are creating. This dynamics aligns the long term incentives of network participants, revolving consumers from contributors to the wealth of few business organizations of today’s model of cross border mobile payment to partners in a decentralized network than no solitary entity controls.


19

CSTO Token is a unit of value of the CSPay Platform which creates to self-govern its business model and empowers the platform users to interact with its cross border mobile crypto payment services, while facilitating the distribution and sharing benefits and rewards to all the platform stakeholders. The velocity of the CSTO Token is inversely proportional to the value of the token. It means the longer the CSTO Token holders hold the CSTOs for, the higher the price of each CSTO Token. A thorough, well-structured and sustainable token strategy will be adopted by CSPay Platform for maintaining CSTO Token’s velocity within the Goldilocks Zone in the initial and in the long run. It will help indicate the healthiness and the strongness of the CSPay Economy which will sustainably grow CSTO’s price. In order to ensure a healthy CSTO token economy and sustainable CSTO token value, the following CSTO token economy design with multiple token velocity altering levers will optimize the ratio of transaction volume and the time that a token holder holds a token before using it to make a transaction. It eventually builds up a new circular cross border mobile payment ecosystem which disrupting the traditional network.

5.3 CSTO Tokenomics


In designing the CSPay’s Token Economy, we seek to provide the following:~ (1)The Right

For Consumers ~ Owning CSTO Tokens bestow a right that results in mobile payment usage, receiving discount or monetary bonus as an incentive for payment trial and additional features, acquiring monetary reward based on active paying activities, obtaining monetary value based on payment sharing or payment data disclosing. For Digital Wallet User~ Owning CSTO Tokens accord to a right to enjoy the services on the CSPay Platform. For Merchants ~ Owning CSTO Tokens confer on a right to have cross border mobile payment tap-and-receive, run a series of smart contracts to organize, promote, manage virtual marketing scheme which easily engaging potential customers. For CSExchange Service User ~ Owning CSTO Tokens provides a right to access to the CSPay Platform CSExchange services including the OTC services and BTC Cash Out Service. By utilizing the smart contract provided by the CSPay Platform, users can ensure their orders will be settled on time once the requirements are met. (2) The Value Exchange The CSTO Token is also an atomic unit of value exchange inside the CSPay Platform, resulting in the creation of a transactional economy between merchants and consumers. It allows CSPay Platform users to earn value and to spend it on services that are internal to the inherent ecosystem. (3) The Toll Just like paying a toll to access a freeway, the CSTO Tokens can be the pay-per-use for the cross border mobile payment services and crypto exchange services.

5.4 Key Design Criteria of the CSTO Token Economy


(4) The Function The CSTO Token can be used as a lever to enrich the CSPay Platform consumers experience, including an incentive for first consumption. (5) Means of Payment The CSTO Token is an efficient and the only payment method and transaction engine of choice within the CSPay ecosystem. For enabling frictionless transactions and communications (placement and implementation of smart contracts which refers to a limited amount of pre-created contracts that can be executed based on executable code on the CSPay Platform) within the ecosystem, stakeholders of the CSPay Platform can be his/her own payment processors without inconvenience or the high-priced and multi-level features of traditional financial settlement options. (6) The Earnings The blockchain-based CSPay Platform can enable an equitable redistribution of the resulting increased value. All the stakeholders of the CSPay Platform can expect upside sharing by way of profit sharing, benefit sharing or other benefits (for instance, from inflation).


5.4 Key Design Criteria of the CSTO Token Economy

Page 20

In order to kickstart a vibrant community of passionate CSPay Platform users, the token distribution is designed to offer as many people as possible the opportunity to take part, either purchasing CSTO tokens or earning them by growing the network. The majority of tokens will be distributed over time to the public. The decentralized CSpay platform is an entity that transparently and programmatically distributes tokens over multiple years to customers and stakeholders who contribute value to the CSPay ecosystem. For this purpose, the platform reserves 10% of the total CSTO supply, which will be deployed through Partners and Supporter Rewards, Grants and Infrastructure Development. When CSPay Platform users are anticipating growth and greater future in the cross border mobile payment network, they will hold onto their CSTO tokens as their tokens value should grow overtime.

5.5 CSPay Allocation is Set Up to Support New Model & Incentive Cross-border Mobile Payment Network Contributors

5.6 Rapid Growth of Cross-border Mobile Payment Activity Drives Demand for CSTO

Demand for CSTO tokens will expand with engagement and subsequent monetization of that engagement via cross border mobile crypto payment, exchange services, digital wallet services etc. (1) Services take mainstream consumers and users’ fancy The focus of CSPay is to scale CSTO tokens to the mass consumer and merchant bases. CSPay, the first CSTO-powered platform, will be seeded with the millions consumers , especially in Hong Kong, Japan and Korea, for whom CSTO will be the first crypto-token they ever used for cross border mobile payment.


(2)Consumers Unfamiliar with crypto must still be able to goad

demand for the token There remains a steep learning curve and technical speed bumps in handling with crypto-tokens for the average consumers and payers. Consumers and payers should not immediately be requested to understand, possess or transact in crypto-tokens before they are incentivized to play a role in the economy. Hence, CSTO token employs existing mainstream monetization strategies as the initial key driver for token demand. (3) Generating Utility Demand for CSTO, exploiting existing mainstream monetization strategies The mobile payment of wechat pay and alipay demonstrate how on CSPay cross border mobile crypto payment drive demand for CSTO. CSPay consumers will be able to purchase CSTO tokens that can be used to settle cross border payment speedily and securely. Hence, the mainstream consumers, through their fiat currency payments, drive demand for CSTOs. The CSPay reward pool algorithmically distributes CSTO token as payment to the cross border mobile payment network contributors, that is, those driving the most value: disbursement, payment transaction, merchant engagement and customer engagement.


Consumers

CSPay Point

Mobile Payment

[Cross Border /Domestic]

CSTO Token

BTC Fiat Currency

(HKD/JPY/KRW)

Fiat Currency (HKD/JPY/KRW)

Merchants

24

The Utility Token Supply will be shaped by CSTO distribution, post TDE, vesting schedules of TDE participants, supporter and reward pool, portion of total token supply held for platform utility and anti-speculative purposes. Limited and Finite Token Supply Similar to most of the crypto-tokens, there is a finite number of CSTO of 10 billion. No additional CSTO can ever be created. The exchangeable value changes over time, total supply does not. A Token with Fundamental Value Contributes to Reduced Exchangeable Float A purposefully designed Platform impacts utility token supply if there are strong enough incentives for consumers and stakeholders to hold and accumulate token balances. For instance, on the CSPay Platform, consumers hold CSTO to qualify the access of cross border mobile payment services, crypto exchange services and impact digital wallet users’ membership level, gain access to exclusive exchange and digital wallet features which meets requirement to participate different level of services across the CSPay Platform.

5.7 CSTO Token Utility and Token Economic Design Limit Token Supply


Chapter 6



6.1 Roadmap

COMPLETED 2017 Q3 Working on first thought for CSPay platform COMPLETED 2018 Q1 Project Launch COMPLETED IN 2018 Q3 CSPay Platform Launch COMPLETED IN 2018 Q3 CSWallet Launch COMPLETED IN 2019 Q1 Merchant Cross Border POS (HK) COMPLETED IN 2019 Q1 Exchange COMPLETED IN 2019 Q2 Merchant Cross Border POS (Japan) COMPLETED IN 2019 Q2 FX Partner Prepaid card COMPLETED IN 2019 Q2 OTC Services COMPLETED IN 2019 Q2 Buy BTC with FPS (HKD), Wechat Pay (HKD/RMB), Alipay (HKD/RMB), Line Pay (JPY), Kakao Pay (KRW) COMPLETED IN 2019 Q2 BTC Cash Out Service (HKD/JPY)

Page 24

Chapter 7

Corporate Backgroup

7.1 Issuer Company


Having a vision to alter cross border mobile payment industry with the arrival of the transformative blockchain and smart contract technologies, Capital Digital Assets Limited is established by key talents who have extensive experiences in the traditional financial service industry, in company with a team of tech-savvy with expertise in the field of blockchain and smart contract technologies. As a specialist CSPay’s our continual aim to develop our business, providing our customers with the best mobile payment experience possible. We aim to constantly review and improve the unique offerings and services that consumers and merchants see as our unique service proposition, and therefore maintain our position as the leading specialist service provider in this growing market.

Page 25 Copyright 2019 © Capital Digital Assets Limited and/or its affiliates. All rights reserved.

27

7.2 Team

We have a team of devoted industry veterans with more than 10 years of collective experience in financial services, cross border payment and technology fields, while partnering with globalized teams that are highly specialized within their respected fields.



Thomas Leung

Strategic Investor & Founder

Billy Leung Co-Founder

Steven Xia

Director , Merchant

Harry Chan Chief Technology Officer

Ri Hanei

Business Development

Director (Japan)

Li JingXiu

Business Development

Director (Korea)

Kelvin Chan

Blockchain Engineer

Page 26

7.2 Partners


Exchange Partner

Technology Partners

Merchant Partner (Partial)

Page 27

Disclaimer & Risks

29

General Disclaimer Capitalst.io is currently under development. In this case, there is a probability that something of what is described in this document may undergo changes. The tokens are proprietary cryptographic tokens developed and issued by the Company to function as the native utility token used in the CSPay Platform as the means of value exchange and to power the CSPay Platform. The tokens are not be intended to constitute securities of any form, units in a business trust, units in a collective investment scheme or any other form of regulated investment or investment product in any jurisdiction. This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities of any form, units in a business trust, units in a collective investment scheme or any other form of regulated investment or invest product, or a solicitation for any form of regulated investment or investment product in any jurisdiction. To the maximum extent permitted by the applicable laws, regulations and rules, the Issuer shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this White Paper or any part thereof by you. This document is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in Capital Digital Assets Limited or any related or associated company. Any such offer or solicitation will be made only by means of a confidential offering memorandum and in accordance with the terms of all applicable securities and other laws. Purchaser of CSTO Tokens are not entitled to and should not expect to receive any return from the Company in relation to (a) their purchase of CSTO Tokens; and/or (b) any trading activities arising from the CSPay Platform. CSPay does not warrant or make any representations that the purchasers will be able to generate a return on their purchase from the trading of the CSTO Tokens, and the purchasers should not expect a return on their trading activities arising from the CSPay Platform. Each participant should consult his/her own counsel, adviser and consultant for advice concerning the various legal, tax and economic considerations relating to his/her participation. This Whitepaper is not to be construed as a recommendation or a representation about the suitability or appropriateness of the CSTO Tokens; or an offer, or solicitation of an offer, to participate in the CSTO Tokens. Any discussion of the risks contained in this Whitepaper with respect to the CSTO Tokens should not be considered to be a disclosure of all risks or complete discussion of the risks which are mentioned. This Whitepaper is executed in both the English and Chinese language. In the event of any conflict between the two languages on the meaning or interpretation of a word, phrase or clause in this, the English language version shall prevail.

Chapter 8


30

No person is bound to enter into any contract or binding legal commitment in relation to the participation in the CSTO Tokens and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper. CSPay does not make or purport to make, and hereby disclaims, any representation, warranty or undertaking (express or implied) in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to the truth, accuracy and completeness of any of the information set out in this Whitepaper. CSPay has not made, and expressly disclaims, any representations with respect to the projected market statistics or timing of revenues or expenses that may be related to this Whitepaper. This Whitepaper does not purport to be complete and is subject to change. No reliance may be placed for any purpose on this Whitepaper or its accuracy, fairness, correctness or completeness. Certain information contained in this Whitepaper constitutes "forward-looking statements", which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", or "believe" or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, including those described herein, actual events or results or the actual performance or activities of the CSTO Tokens, the CSPay Platform or CSPay may differ materially from those reflected or contemplated in such forward-looking statements. Not an Offering of Investment, Securities, Commodities or Swaps (a) The sale of CSTO Tokens and CSTO Tokens themselves are not currencies, securities, commodities, swaps or derivatives on a currency, security or commodity, or a financial asset or instrument of any kind; (b) purchases and sales of CSTO Tokens are not subject to the protections of any laws governing those types of financial instruments; and (c) this Whitepaper does not constitute a prospectus or offering document, and is not an offer to sell, nor the solicitation of an offer to buy an investment, a currency, a security, commodity, or a swap or derivative on either a security or commodity or a financial asset or instrument of any kind. No Rights, Uses or Attributes Unless otherwise specifically stated in this Whitepaper, CSTO Tokens do not have any rights, uses, purpose, attributes, functionalities or features. In particular CSTO Tokens would not be entitled or linked to any income stream, share of profits, dividends, debt or loans, or ownership of or rights to any underlying assets or properties. Also CSTO Tokens would not be linked or otherwise be related to any rights, options or interests in any shares, stock, debentures, loan stocks, funds, bonds or notes. CSTO Token holders are not entitled to the shares of CSPay, and proceeds from the CSTO Token crowdsale would not be accounted as debt, liability or equity capital items on the balance sheet of CSPay. CSPay does not guarantee and is not representing in any way CSTO Tokens to have any level of value. Inherent Value of CSTO Tokens There may be no apparent inherent value of CSTO Tokens and CSTO Tokens are not a traditional currency issued by any jurisdiction. CSTO Tokens may have no use or recognition outside the CSPay Platform. Representatives of various central banks and regulatory authorities, as well as senior market participants and academics, have warned of serious risks in relation to (i) initial coin offerings; (ii) cryptocurrency and digital tokens trading, including the extreme volatility, the lack of underlying economic value, the lack of regulation, and (iii) the use of cryptocurrencies or digital tokens for money laundering or money transfers. There is a real possibility that some or a conjunction of these factors will lead to government or regulatory intervention or market action which could severely affect the price and liquidity of CSTO Tokens.


31

Risk of Project Failure As with any project, the development of the CSPay Platform, and the execution of the project more broadly, carries with it the risk of delay and even failure. The core team has relevant track record of development and business management experience, but this is not a guarantee of success. The team will endeavor to achieve the milestones outlined in this Whitepaper; however, it is under no obligation to do so. The CSPay Platform (and its operators) may be subject to regulatory licensing or registration requirements in certain jurisdictions. While the CSPay core team will seek to obtain the relevant licenses and registrations in the relevant jurisdictions as necessary for the operations of the CSPay Platform, there is no guarantee that such licenses and registration would be approved by the relevant regulatory authorities or the licenses and registrations can be maintained. Where applicable regulatory licenses or registrations are not, or cannot be, obtained or maintained, this will significantly affect the operations of the CSPay Platform and CSPay. Technological Development While CSPay will make every reasonable effort to complete the CSPay Platform, due to the technically complex nature of the CSPay Platform, CSPay could face difficulties from time to time that may be unforeseeable and/or unresolvable. Accordingly, it is possible that the development of the CSPay Platform could fail, terminate or be delayed at any time for any reason, and an official completed version of the CSPay Platform may not be released and there may never be an operational CSPay Platform. Development failure or termination may render CSTO Tokens un-transferable, of reduced or no utility, and/or obsolete. Furthermore, because the CSTO Tokens are based on the Ethereum blockchain, featuring an open sourced, blockchain-based distributed computing platform using a smart contract, there is the risk that Ethereum smart contracts may contain intentional or unintentional bugs or weaknesses which may negatively affect the CSTO Tokens or result in the loss of CSTO Tokens, as well as the loss of ability to access or control CSTO Tokens. In such events, there may be no remedy and holders of CSTOTokens are not guaranteed any remedy, refund or compensation. Market Environment CSPay Platform is a new product, and the factors affecting the further development of CSPay Platform may include general economic and market conditions. Challenging economic and market conditions worldwide from time to time have contributed, and may continue to contribute, to slowdowns in the information technology industry, and weaknesses in the economy could have a negative impact on CSPay’s business, operations and financial condition. Also, in a down-cycle economic environment, CSPay may experience the negative effects of a slowdown in trading and usage of the CSPay Platform and may delay or suspend the structuring, licensing, and launch of the anticipated CSPay future business lines. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant, adverse impact on CSPay's business, financial condition and results of operations. Risk of Uninsured Losses Unlike currency in bank accounts or accounts at other financial institutions, which may be subject to deposit protection schemes, CSTO Tokens are uninsured unless someone specifically obtains private insurance to insure them. Thus, in the event of loss or loss of utility value, there is no public insurer or private insurance arranged by CSPay, to offer recourse to a CSTO Token holder.


32

Risks

In addition, even if the CSPay Platform is launched, the ongoing success of the CSPay Platform relies on the interest and participation of third parties like institutional investors. There can be no assurance or guarantee that there will be sufficient interest or participation in the CSPay Platform. Risk of Shift in Scope, Specifications or Objectives of the Project The project is still at an early development phase. Its governance structure, fees, purpose, consensus mechanism, algorithm, code, infrastructure design and other technical specifications and parameters may be updated and changed frequently without notice. While this Whitepaper contains the key information currently available in relation to the project, it is subject to adjustments and updates from time to time. The CSPay Platform may also be subject to regulatory supervision in a relevant jurisdiction and distribution of information relating to the CSPay Platform may be restricted to qualified persons pursuant to applicable laws and regulations. CSTO Token holders will not have full or timely access to all the information relevant to the project (including CSPay Platform or CSTO Tokens). Intellectual Property and Information Access CSPay shall retain all right, title and interest in all of CSPay’s intellectual property, including, without limitation, inventions, ideas, concepts, code, discoveries, processes, marks, methods, software, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable or protectable in trademark, and any trademarks, copyright or patents based thereon ("Intellectual Property Rights"). CSPay shall exclusively own all Intellectual Property Rights in any change or improvement to any part of the project or CSPay’s technology made or created in the course of the performance of the project. CSTO Token holders shall not be entitled to any right, claim or warranty in respect of any content generated or hosted by or on behalf of CSPay, or access to any information held by CSPay, as part of the project. Liquidity Risk CSTO Tokens are intended to be used solely on the CSPay Platform and are not expected to be liquid. CSPay will not support or otherwise facilitate any secondary trading or external valuation of CSTO Tokens. This restricts the contemplated avenues for using CSTO Tokens, and could therefore involve liquidity risk with respect to CSTO Tokens. Even if secondary trading of CSTO Tokens is facilitated by third party exchanges, such exchanges may be relatively new and subject to little or no regulatory oversight, making them more susceptible to market-related risks and market abuse activities. Furthermore, to the extent that third-parties do ascribe an external exchange value to CSTO Tokens (denominated in a digital or fiat currency), such value may be extremely volatile and diminish to zero. Unlike fiat currency, CSTO Tokens may have no use or recognition outside the CSPay Platform. Transaction Interval Risk There is a time interval between the receipts of payment from the participant by CSPay and the release of CSTO Tokens to the relevant participant‘s digital wallet. During this time, CSPay may have possession of participants’ digital currency – and it may itself be susceptible to various risks (including but not limited to credit risk and cybersecurity risk). CSPay may lose participants‘ digital currency entirely due to unforeseen circumstances. In any such scenario, CSPay will not be obliged to compensate participants.


Verification Failure Participants in CSTO Tokens are required to complete know-your-customer and anti-money laundering and counter-terrorist financing checks. The delivery of CSTO Tokens to an entity or individual is contingent upon the completion of such checks. If the entity or individual is unable to complete all required verifications, they may not receive CSTO Tokens or participate on the CSPay Platform. CSPay will be under no obligation to compensate them or refund any purchase proceeds. Platform Manipulation A number of individuals may directly or indirectly hold significant portions of the total available CSTO Tokens. These CSTO Token holders may have significant influence through the use of their CSTO Tokens. These significant CSTO Token holders may, acting alone or in concert, not necessarily make decisions that are in the best interests of the other CSTO Token holders or of the CSPay Platform as a whole. Value of Tokens There are no guarantees as to the value of CSTO Tokens and no guarantees that the value per CSTO Token determined by the market (if any) will be equal to or higher to the value paid for the purchase of CSTO Tokens. There is the possibility that the value per CSTO Token may fall below the value paid for the purchase of the CSTO Tokens at any relevant time. CSPay reserves the right to change the duration of any timeframe for the distribution of CSTO Tokens, including, without limitation, the unavailability or non-functionality of CSPay's website or other unforeseen procedural or security issues. Competitor Risks It is possible that alternative platforms could be established that utilize the same open source code and protocol underlying the CSPay Platform and CSTO Tokens. These may attempt to facilitate services that are materially similar to those provided by CSPay through the CSPay Platform. The CSPay Platform may compete with these alternative platforms, which could negatively impact the usage of the CSPay Platform. Unanticipated Risks Cryptographic tokens such as CSTO Tokens are a new and untested technology. In addition to the risks included herein, there are other risks associated with the purchase, holding and use of CSTO Tokens, including those that CSPay cannot anticipate. Such risks may further materialize as unanticipated variations or combinations of the risks discussed herein or as completely new forms of risks. Lack of Public Interest CSTO Tokens may not end up being popular, prevalent or widely distributed. CSTO Tokens may remain marginalized in the long run, appealing to only a minimal fraction of holders. An absence of active holders or low level of utilization may negatively affect the long-term development and future of the CSTO Tokens, and reduce or adversely affect the utility of CSTO Tokens. Price Volatility By nature, cryptocurrencies and digital tokens are highly volatile, with highly fluctuating prices, when compared to other assets such as stocks, bonds, and other alternative investment instruments. No one should participate in CSTO Tokens more than they are willing to lose.


Tax Risks The tax characterization of CSTO Tokens is uncertain. Participants must seek their own tax advice in connection with purchasing CSTO Tokens or otherwise engaging in transactions in connection with CSTO Tokens, which may result in adverse tax consequences to participants, including withholding taxes, income taxes, and tax reporting requirements. Privacy Risks As part of the CSTO Token crowdsale and the subsequent verification processes, CSPay may collect personal information from participants. The collection of such information is subject to applicable laws and regulations (and where applicable, CSPay's privacy policy from time to time). All information collected will be used for purposes of CSTO Token crowdsale and management of the CSPay Platform (or the project more generally) and may be transferred to contractor, service providers and consultants worldwide as appointed by CSPay. Apart from external compromises noted below, CSPay and its appointed entities may also suffer from internal security breach whereby their employees may misappropriate, misplace or lose personal information of CSTO Token holders. CSPay may be required to expend significant financial resources to alleviate problems caused by any breaches or losses, settle fines and resolve inquiries from regulatory or government authorities. Any information breaches or losses will also damage CSPay's reputation and thereby may harm its long term prospects as well as that of the CSPay Platform. Governance Risks CSTO Tokens confer no governance or voting rights of any kind with respect to the CSPay Platform or CSPay. All decisions involving the CSPay Platform or CSPay will be made by executives, directors and/or members of CSPay, including, but not limited to, decisions to discontinue the CSPay Platform, to sell more CSTO Tokens for use on the CSPay Platform, or to sell or liquidate CSPay. Conflicts of interest with CSTO Token holders may arise. These decisions could adversely affect the CSPay Platform and the utility of CSTO Tokens in circulation. Risks Associated with Ethereum Since Tokens are based on the Ethereum blockchain, any malfunction, breakdown or abandonment of the Ethereum blockchain may have a material adverse effect on CSTO Tokens and/or the CSPay Platform. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to CSTO Tokens by rendering ineffective any applicable cryptographic consensus mechanism that underpins the Ethereum blockchain. Unauthorized Claim of Tokens or Proceeds from Crowdsale CSTO Tokens may be subject to expropriation and or/theft. Hackers or other groups or organizations may attempt to interfere with the CSTO Tokens, or steal the BTC / ETH and cryptocurrency proceeds from the crowdsale, which may potentially impact the ability of CSPay to develop and promote the CSPay Platform. To account for this risk, CSPay has and will continue to implement comprehensive security precautions to safeguard the BTC / ETH and cryptocurrency obtained from the CSTO Token Crowdsale, including regular security audits of hot and cold wallets to be conducted by the internal team and external technical advisors. However such risk may not be eliminated.



Risks of Hacking and Security Weaknesses Hackers or other malicious groups or organizations may attempt to interfere with the CSPay Platform and/or CSTOTokens in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, coordinated attacks, Sybil attacks, smurfing and spoofing. Furthermore, the CSPay Platform may be based on open-source software, there is a risk that a third party or a member of the CSPay team may intentionally or unintentionally introduce weaknesses into the core infrastructure of the CSPay Platform, which could negatively affect the CSPay Platform and the utility of CSTO Tokens. Risks Associated with the Development and Maintenance of CSPay Platform CSPay The CSPay Platform is still under development and may undergo significant changes over time. Although we intend for CSTO Tokens and the CSPay Platform to follow the specifications set forth in this Whitepaper, and will take commercially reasonable steps toward those ends, we may have to make changes to the specifications of CSTO Tokens or the CSPay Platform for any number of legitimate reasons. This could create the risk that CSTO Tokens or the CSPay Platform, as further developed and maintained, may not meet participants' expectations. Furthermore, despite CSPay's good faith efforts to develop and maintain the CSPay Platform, it is still possible that the CSPay Platform will experience malfunctions or otherwise fail to be adequately developed or maintained, which may negatively impact the CSPay Platform and CSTO Tokens. Abandonment or Development Failure Due to the technically complex nature of the CSPay Platform, CSPay could face difficulties from time to time that may be unforeseeable and/or unresolvable. Accordingly, the development of the CSPay Platform could fail, terminate or be delayed at any time for any reason (including but not limited to lack of funds). Development failure or termination may render CSTO Tokens un-transferable, of reduced or no utility, and/or obsolete. Flaw in Source Codes While CSPay adopts quality assurance procedures to help ensure the source codes as accurately as possible reflect their intended operation, the flawlessness of the source codes cannot be guaranteed. They may contain bugs, defects, inconsistencies, flaws or errors, which may disable some functionality, create vulnerabilities or cause instability. Such flaws may compromise the predictability, usability, stability, and/or security of CSTO Tokens and the CSPay Platform. Inadequacy of Processing Power The ramp up of the CSPay Platform may be accompanied by sharp increases in transaction numbers and demand for processing power. If the demand for processing power outgrows that forecasted, the network of the CSPay Platform could be destabilized and/or stagnated. This may create opportunities for fraudulent activities including but not limited to false or unauthorized transactions to arise. All these may adversely impact the usability, stability and security of the CSPay Platform and affects the utility of CSTO Tokens.



36

Regulatory Risks The regulatory environment concerning blockchain and cryptocurrencies is still in its nascent stages of development. Cryptocurrencies have been the subject of regulatory scrutiny by various regulatory bodies around the globe. The CSPay Platform could be impacted by one or more regulatory actions that could impede or limit the ability of CSPay to continue with the development of the CSPay Platform. CSPay cannot foresee how regulations may impact the project and the CSPay Platform development. Furthermore, many aspects of the CSTO Tokens and CSPay also involve untested areas of law and regulation, and could be subject to new laws or regulation. Such laws and regulations may be varied in the future and no assurance can be given that any such changes will not adversely affect the CSTO Tokens, the CSPay Platform or CSPay. Accordingly, their legal and regulatory outcome in all relevant jurisdictions is not possible to predict. Since regulatory policies can change with or without prior notice, any existing regulatory permissions for or tolerance of CSTO Tokens or CSPay in any jurisdiction may be withdrawn without warning. In particular, the regulatory status of CSTO Tokens is unclear or unsettled in many jurisdictions. CSTO Tokens could be deemed from time to time as a virtual commodity, a digital asset or even as money, securities or currency in various jurisdictions and therefore could be prohibited from being sold, purchased, traded, distributed or held in certain jurisdictions pursuant to local regulations. There is no guarantee that CSTO Tokens and CSPay can maintain any particular legal or regulatory status in any particular jurisdiction at any time. CSPay may have to disallow people based on their citizenship or location from accessing the CSPay Platform or engaging in any transactions that involve CSTO Tokens if doing so becomes commercially or legally unsustainable. Certain characteristics of cryptocurrencies and digital tokens may present higher anti-money laundering / counter terrorist financing (“AML/CTF”) risks, such as (without limitation): the anonymity provided by the trade in virtual currencies on the internet; the limited identification and verification of participants; the lack of clarity regarding the responsibility for anti-money laundering / counter terrorist financing compliance, supervision and enforcement for these transactions that are segmented across several countries; and the lack of a central oversight body, and more stringent AML/CTF requirements may be applicable to the operations relating to CSTO Tokens going forward. There can be no guarantee that new laws, regulations and practices specifically relating to blockchain and cryptocurrencies, digital tokens and transactions in relation to initial coin offerings will not be promulgated in the future. The promulgation of such new laws, regulations and practices may operate to the advantage or disadvantage of the CSTO Tokens, the CSPay Platform or CSPay. There is little precedent on how existing law and regulation might treat the issue, fungibility, settlement finality, transfer, or other disposition of the CSTO Tokens. There is also little precedent on how existing law and regulation might treat the rights and obligations between and among CSTO Token holders, the CSPay Platform and CSPay. The occurrence of any related issue or dispute could have a material adverse effect on the CSTO Tokens, the CSPay Platform or CSPay.



37

Loss of Private Key In general blockchain assets are controllable only by those who know the unique private cryptographic key relating to the network address at which the blockchain assets are held. To the extent a private key is lost, destroyed or otherwise compromised and no backup of the private key is accessible, you may not be able to access the blockchain asset associated with the corresponding address and the private key will not be capable of being restored by the network. Any loss of private keys relating to digital wallets used to store blockchain assets could have a material adverse effect on our business or you. The loss or destruction of a private key will also permanently and irreversibly deny the holder access to their CSTO Tokens. CSTO Tokens are controlled only by the validation of both the relevant unique public and private keys through the local or online wallet. While it is recommended that all CSTO Token holders protect and securely store their private keys, each holder is responsible for safeguarding the private keys applicable to their own wallets.



38

CSPAY

CSTO

The Future of Mobile Payments Technology


Date post:	20-May-2020
Category:	Documents
Upload:	others
View:	4 times
Download:	0 times

Project HAZZA IC 01112017 v0 Paper_24062019_v2.1_Eng.pdf · 2019-11-28 · We have developed the...

Documents