Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 111

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 111
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 at a customer’s request; (v) will only enter into trades or staking arrangements based on its own personal/proprietary needs;
(vi) will not collect any fees from counterparties (instead, it is the counterparties that are service providers, providing services to
BTSG); and (vii) will only trade or stake through or with licensed or licensed service providers. Accordingly, BTSG is unlikely to be
regarded as carrying on a business in providing a “digital payment token service” under the PS Act’s current regulatory
regime.

However, there remains a risk that MAS may take
a more restrictive view, with the trading of ETH being construed as “dealing in DPT”, requiring a license under the PS Act.
In addition, laws and regulations related to payments and financial services are evolving in Singapore, and changes in such laws and regulations
could affect our business practices in the manner that we have done, expect to do, or at all. MAS could enact new regulations, change
regulations that were previously adopted, modify, through supervision or enforcement, past regulatory guidance, or interpret existing
regulations in a manner different or stricter than have been previously interpreted, any of which could adversely affect or require us
to change BTSG’s business practices in Singapore.

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Regulations on Anti-money Laundering and Countering the Financing of Terrorism (“AML/CFT”)

We and our partners who work with us are required
to comply with certain anti-money laundering requirements in the jurisdictions where we and our partners operate. In Singapore, regulated
financial institutions must comply with all applicable AML/CFT obligations, including the relevant AML/CFT Notices and Guidelines issued
by MAS (e.g. the Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service
and the Guidelines to Notice PSN02 on Prevention of Money Laundering and Countering the Financing of Terrorism - Digital Payment Token
Service). Among other things, the AML/CFT Notices require financial institutions to put in place robust controls to detect and deter the
flow of illicit funds through Singapore’s financial system, identify and know their customers (including beneficial owners), conduct
regular account reviews, and to monitor and report any suspicious transaction.

The primary AML/CFT legislation in Singapore that
are of general application are the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, Chapter 84A of