Chapsmart Ltd Terms and Conditions

Last Updated: April 3, 2025

These Terms and Conditions govern your use of the service provided by Chapsmart Ltd (hereinafter “Chapsmart”), a company registered with the Business Registration and Licensing Agency (BRELA) in Tanzania.

Chapsmart provides a payment disbursement service that enables users outside Tanzania to send payments to third parties in Tanzania, such as merchants, service providers, or individuals, using Bitcoin as the payment method for this service (hereinafter “The Services”). Chapsmart does not operate as a digital asset exchange, does not buy, sell, or trade digital assets, and does not facilitate the conversion of one type of digital asset to another (e.g., Bitcoin to TZS). Users pay Chapsmart in Bitcoin solely as compensation for the service of disbursing payments in Tanzanian Shillings (TZS) to designated recipients in Tanzania. Chapsmart does not purchase, sell, or take custody of users’ digital assets beyond receiving Bitcoin as payment for its services. The Services may be provided in cooperation with third-party providers (e.g., mobile money operators). Your use of the Services is hence additionally subject to the terms of our third-party provider(s), which you must accept before using the Services.

This User Agreement is governed by and construed in accordance with the laws of Tanzania. While Chapsmart operates in compliance with Tanzanian law as a provider of payment disbursement services, users are solely responsible for ensuring their compliance with Tanzanian tax laws and any applicable laws in their jurisdiction, including those related to digital assets, when utilizing Chapsmart’s services.

By registering to the Chapsmart platform and using The Services, you agree that you have read, understood, and accepted all the Terms and Conditions of Chapsmart Ltd and our third-party provider(s). At any time, Chapsmart Ltd has the right to modify these Terms and Conditions.

Definitions

  • Account Information: Refers to a private key, password, or other information provided by you as part of our security and verification procedures.
  • Business Day: Refers to an official working day of the week in Tanzania, typically Monday to Friday, excluding public holidays.
  • Company: Refers to Chapsmart Ltd.
  • Digital Assets: Refers to virtual currencies, such as Bitcoin, that exist or are stored in digital form and are digital representations of value that are not issued or guaranteed by a central bank or public authority.
  • Digital Currencies: Refers to digital or virtual currencies secured by cryptography, their derivatives, or other types of digital assets with a certain value.
  • Eligibility Criteria: Refers to a set of requirements that must be met to use the Services.
  • Services: Refers to Chapsmart’s payment disbursement service, whereby users pay Chapsmart in Bitcoin to facilitate Tanzanian Shilling (TZS) disbursements to third-party recipients in Tanzania. Chapsmart does not provide digital asset exchange, wallet, or conversion services.
  • Site/Platform: Refers to the www.chapsmart.com website, mobile applications, or other digital interfaces provided by Chapsmart.
  • Users: Refers to all individuals or organizations that access, download, or use Chapsmart Services.
  • User Accounts: Refers to an account created for users’ use on the platform, with required Account Information provided to enable access to the Account.

User Agreement

These Terms of User Agreement (hereinafter “Agreement”) along with our Company Privacy Policy constitute a legally binding agreement between you and Chapsmart and its affiliated companies, websites, applications, and tools, concerning your access to and use of the www.chapsmart.me website as well as any other media form, media channel, mobile website, or mobile application related or connected thereto.

The Company makes no representation that the Site is appropriate or available in locations other than where it is operated by the Company. The information provided on the Site is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject the Company to any registration requirement within such jurisdiction or country. Accordingly, those persons who choose to access the Site from other locations do so on their own initiative and are solely responsible for compliance with local laws, if and to the extent local laws are applicable.

User Account

An account will be created for your use on the Site, and you will be provided with required Account Information to enable your access to the User Account. You must always treat Account Information as confidential and must not disclose it to any third party. Any access to the Site through your User Account shall be considered as access by you or on your behalf, and you shall be solely responsible for any activity carried out in, by, or through your User Account on the Site.

Eligibility

By registering to use a Chapsmart User Account, you represent, consent, and warrant that:

  • As an individual, you have full legal capacity and sufficient authorizations to enter these Terms.
  • You have not been previously suspended or removed from using Chapsmart Services.
  • You do not currently have a Chapsmart User Account.
  • You will not use the Chapsmart Services if any applicable laws in your jurisdiction prohibit you from doing so.
  • You are solely responsible for ensuring that you are compliant with these Terms of Use with all laws, rules, and regulations applicable to you. If your right to access the Services is revoked or use of the Services is in any way prohibited, you agree not to use or access the Site and use the Services in any way.

Access to the Site

We do not guarantee that your use of the Site will always be available or uninterrupted. We may suspend, withdraw, discontinue, or change all or any part of the Site without notice. We will not be liable to you, including without limitation for any losses incurred due to the volatility of prices of the Digital Asset, if for any reason the Site is unavailable at any time or for any period.

You are also responsible for ensuring that all persons who access the Site through your internet connection are aware of these Terms and Conditions of Chapsmart and other applicable terms and conditions and that they comply with them.

Nature of Transactions and User Responsibilities

Chapsmart’s service involves the receipt of Bitcoin from users outside Tanzania as payment for facilitating disbursements in TZS to third parties within Tanzania. This transaction is a purchase of Chapsmart’s payment disbursement service, not a sale of digital assets by the user to Chapsmart, nor a conversion of digital assets from one form to another. Chapsmart does not provide exchange services or act as a marketplace for digital assets. Users are solely responsible for determining and complying with any tax obligations that may arise from their use of Chapsmart’s services, including but not limited to Tanzania’s digital assets tax applicable to transactions involving the use of digital assets. Chapsmart does not collect, report, or remit taxes on behalf of users, and users are advised to consult a qualified tax advisor to understand their individual tax liabilities under Tanzanian law and the laws of their jurisdiction.

Liability

Users are responsible for their actions in connection with the use of the Site, Service, and their Accounts. Users are also responsible for protecting access information to the Site, including but not limited to private keys and passwords. The Company is not responsible for the outcome, whether positive or negative, of any action performed by any of its users within or related to the Site. The Company shall in no manner be liable for any transaction failure or loss caused due to any fault on the part of the User, including for the User providing any wrong information or detail. In the event the User deliberately provides false information and/or provides any misrepresentation and/or attempts to create false information and/or impersonate any other person and/or attempts to breach the Chapsmart Terms and Conditions, the User shall be liable to indemnify the Company, and the Company may take all necessary legal actions against the User, including any criminal action.

The parties agree that in no event shall the Company or its affiliates, officers, directors, agents, employees, and suppliers be liable for lost profits or any special, incidental, or consequential damages arising out of or in connection with the use of our Site, Service, or these Terms and Conditions. In case the applicable laws do not permit the limitation or exclusion of damages as described above, our aggregate liability (including the liability of our affiliates, officers, directors, agents, employees, and suppliers) in respect of claims based on events arising out of or in connection with any single member’s use of the Site, whether in contract or tort or otherwise, shall in no circumstances exceed the amount of the transaction(s) that are the subject of the claim less any amount of commission that may be due and payable in respect of such transaction(s).

We have no control over, or liability for, the delivery, quality, safety, legality, or any other aspect of services or goods that you may pay for through third parties (including other users of the Services) using our disbursement service.

We shall not be liable or responsible for any risk associated with such third-party transactions, including any issue that may arise in respect of banking or mobile money transactions that you may undertake in pursuance thereof.

Chapsmart is not liable for any taxes, penalties, or interest imposed by the Tanzania Revenue Authority (TRA) or any other tax authority arising from your use of our services, including but not limited to the digital assets tax. As Chapsmart does not engage in the sale, exchange, or conversion of digital assets, we do not assume any responsibility for determining or ensuring your compliance with applicable tax laws. Any tax obligations related to paying Chapsmart in Bitcoin for our payment disbursement services rest solely with you, the user.

Payments & Transactions

By making use of Chapsmart Services, you acknowledge and agree that:

  • You are aware of the risks associated with transactions involving digital currencies and other derivatives.
  • You shall assume all risks related to the use of Chapsmart Services and transactions involving digital currencies.
  • Chapsmart shall not be liable for any such risks or adverse outcomes.

Resolution of Disputes & Applicable Law

Chapsmart and the User agree that any disputes arising between them shall initially be attempted to be resolved by mutual negotiations. In such a case, the User shall contact Chapsmart by sending an email describing the dispute to support@chapsmart.me. Chapsmart will contact the User via the email that was used for registration or any other information channel that the User provided to Chapsmart in order to access the Platform.

The provisions of the Services shall be governed by and interpreted in accordance with Tanzanian Law, and the parties submit to the exclusive jurisdiction of the Tanzanian Courts.

If you experience a problem with a payment disbursement to a third party or if you believe a third party has behaved in a fraudulent, misleading, or inappropriate manner, you may notify us via support@chapsmart.me so that we may consider what action to take. Our decision in relation to such dispute shall be final and binding on you.

Notwithstanding anything contained herein, we reserve the right to decide if a dispute exists in relation to any transaction undertaken on the Site by you with a third party, and our decision in relation to the same shall be final and binding on you.

Copyrights and Other Intellectual Property Rights

Unless otherwise indicated by us, all copyright and other intellectual property rights in all content and other materials contained on our website or provided in connection with the Services, including, without limitation, the Chapsmart logo and all designs, text, graphics, pictures, information, data, software, sound files, other files, and the selection and arrangement thereof (collectively “Chapsmart Materials”) are the proprietary property of Chapsmart Ltd or our licensors or suppliers.

Amendment and Changes

We may revise these Terms and Conditions at any time by amending this page. Please check this page from time to time to take notice of any changes we made, as they are binding on you.

We may, without prior notice, change the Services; add or remove functionalities or features; stop providing the Services or features of the Services to you or to Users generally; or create usage limits for the Services.

Taxes

It is your responsibility to determine, collect, report, and submit any taxes applicable to the payments you make to Chapsmart in Bitcoin for its payment disbursement services, including any obligations under Tanzania’s digital assets tax laws, which apply to the use of digital assets for services. Chapsmart does not sell digital assets, convert digital assets, or use your Bitcoin to purchase goods or services on your behalf; Chapsmart’s service is limited to disbursing TZS to third parties in Tanzania after receiving Bitcoin as payment. Accordingly, Chapsmart is not responsible for collecting, reporting, or remitting any taxes to the Tanzania Revenue Authority (TRA) or any other tax authority on your behalf. You should consult a tax professional to understand how Tanzanian tax laws and the laws of your jurisdiction apply to your use of Chapsmart’s services.

Chapsmart is registered with the Tanzania Revenue Authority (TRA) and complies with applicable tax obligations, including the 3% withholding tax on digital asset transactions as per the Finance Act 2024.

Fees

Users compensate Chapsmart for its payment disbursement services by sending Bitcoin via the Lightning Network. This Bitcoin payment represents a fee for Chapsmart’s service of disbursing TZS to third-party recipients in Tanzania on the user’s behalf. Chapsmart does not sell, exchange, or convert users’ Bitcoin into other digital assets or fiat currency for the user’s benefit; rather, Chapsmart receives Bitcoin as payment and independently handles the disbursement process in TZS. Chapsmart does not assume liability for any taxes, including Tanzania’s digital assets tax, that may apply to users’ transactions. Users are responsible for assessing and fulfilling their own tax obligations related to paying Chapsmart in Bitcoin and should seek professional tax advice as needed.

Chapsmart charges the following fees for the Services we provide through the Platform:

  • Fee Type: Virtual Asset Payment
  • Amount: 0 TZS and 5% of the transaction value (calculated based on the TZS amount disbursed)

Risks

A considerable loss may be sustained/incurred while using Chapsmart Services due to the nature of digital assets. Therefore, it is advised that you carefully determine your financial circumstances and risk tolerance before engaging with our Services. Additionally, you should consider the following risks associated with Digital Assets:

  • Digital Assets are subject to evolving regulations: The regulatory environment surrounding Digital Assets is constantly changing and may differ depending on your location. Some jurisdictions may currently lack specific regulations, while others may impose restrictions on holding and transferring Digital Assets in the future. It is essential to stay informed about regulatory developments and, if necessary, seek appropriate legal counsel.
  • Lack of recognition as a medium of payment or commodity: Virtual currencies, including cryptocurrencies, may not be recognized or authorized as legal tender or an official medium of payment by central banks, monetary authorities, or governmental/regulatory bodies, including the Bank of Tanzania. They may also not be officially recognized as commodities for trade purposes.
  • High volatility and potential total loss: The value of Digital Assets can be highly volatile and may experience significant price fluctuations. As a result, there is a risk of financial loss due to market volatility.
  • Security and government crackdown risks: Since Digital Assets are held and transacted online, they are susceptible to security breaches and hacking attempts. Additionally, some governments may impose restrictions or crackdowns on the use of Digital Assets, potentially affecting their usability.

Please note that the above statement of risks associated with the use of Digital Assets is not exhaustive, and there may be additional risks not listed or foreseen by the Company. By creating a User Account, you acknowledge that you have carefully assessed your financial standing and risk tolerance, and you confirm that they are suitable for using Chapsmart Services. Furthermore, it is crucial to remain aware of the evolving regulatory landscape and potential risks associated with Digital Assets as the regulatory environment may change over time.

Communication

When you visit the Site or send emails to us, you are communicating with us electronically. You also consent to receive communications from us electronically. We will communicate with you by email or by posting notices on this Site. You agree that all agreements, notices, disclosures, and other communications that we provide to you electronically satisfy any legal requirement that such communications be in writing. You agree that in case there are any changes in any information provided by you to us, including your email address and other contact details, you will be solely responsible for updating them regularly. If we send any communication by email, it shall be sent to your email address available on the records created by you on the Site and the App, and it shall be deemed to have been received by you once it is reflected as sent in the outbox of our email id.

System Security, Maintenance, and Downtimes

Chapsmart Ltd places a high priority on system security to protect the integrity and confidentiality of user data and transactions. We implement industry-standard security measures to safeguard our platform and infrastructure from unauthorized access, data breaches, and other potential threats.

  • System Maintenance: From time to time, Chapsmart Ltd may conduct scheduled maintenance or updates to improve the platform’s performance, security, and user experience. During scheduled maintenance, certain functionalities or services may be temporarily unavailable. We will make reasonable efforts to notify users in advance of any planned maintenance that may result in a significant disruption of services.
  • Downtimes and Unforeseen Events: Despite our efforts to maintain uninterrupted service, there may be instances of unexpected downtimes due to factors beyond our control, including technical issues, internet connectivity problems, cyber-attacks, force majeure events, or other unforeseen circumstances. In such situations, we will work diligently to resolve the issues and restore normal operations as quickly as possible.
  • Liability: While we take all necessary precautions to ensure system security and minimize downtimes, Chapsmart Ltd shall not be held liable for any loss, damages, or inconvenience arising from scheduled maintenance, downtimes, or unforeseen events that may affect the availability or use of the Site or the Services.
  • User Responsibility: Users are responsible for ensuring the security of their devices, internet connections, and login credentials. It is advisable to use up-to-date antivirus software and exercise caution when accessing the platform from public networks or shared devices.

By using the Chapsmart Services, you acknowledge and agree to the system security measures and maintenance procedures described in this section.

Customer Support

Chapsmart Ltd is committed to providing excellent customer support to assist users with any inquiries, issues, or concerns related to the Services. Our customer support team is available to respond to queries and provide assistance during our regular business hours.

  • Customer Support Channels: You can reach our customer support team through the following channels:
  • Response Deadlines: Chapsmart Ltd aims to respond to customer support inquiries as promptly as possible. We will make reasonable efforts to address your queries and concerns within two (2) business days. However, response times may vary depending on the nature and complexity of the inquiry.

Please note that our customer support team may require additional time to investigate and resolve certain issues thoroughly. We appreciate your understanding and patience in such cases.

  • User Responsibilities: To facilitate a smooth and efficient customer support process, users are encouraged to provide accurate and relevant information regarding their inquiries or concerns. Providing complete and detailed information will help our team understand and address your issues more effectively.
  • Feedback and Improvement: Chapsmart Ltd values user feedback and suggestions. If you have any recommendations for improving our Services or customer support experience, please feel free to share them with us through the provided customer support channels.

Assignment

You acknowledge and agree that the Company can freely assign these Terms of Use or any of its rights under these Terms of Use to any person without your consent. You shall, however, not be entitled to assign these Terms of Use, in whole or in part, to another person without the prior written approval of the Company.