Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 46

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 46
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 implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may
benefit the overall economy, but may have a negative effect on us. For example, our financial condition and results of operations may
be adversely affected by government control over foreign capital investments or changes in tax regulations. Some Southeast Asia markets
have historically experienced low growth in their GDP, significant inflation and/or shortages of foreign exchange. We are exposed to the
risk of rental and other cost increases due to potential inflation in the markets in which we operate. In the past, some of the governments
in Southeast Asia have implemented certain measures, including interest rate adjustments, currency trading band adjustments and exchange
rate controls, to control the pace of economic growth. These measures may cause decreased economic activity in Southeast Asia, which may
adversely affect our business, financial condition, results of operations and prospects.

In addition, some Southeast
Asia markets have experienced, and may in the future experience, political instability, including strikes, demonstrations, protests, marches,
coups d’état, guerilla activity or other types of civil disorder. These instabilities and any adverse changes in the political
environment could increase our costs, increase its exposure to legal and business risks, disrupt its office operations or affect its ability
to expand our user base.

Uncertainties with respect to the legal system in certain markets in Southeast Asia could adversely affect GCL Companies.

The interpretation and enforcement
of laws and regulations involve uncertainties and inconsistencies. Since local administrative and court authorities and in certain cases,
independent organizations, have significant discretion in interpreting and implementing statutory provisions and contractual terms, it
may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we may enjoy in many
of the localities that we operate in. Moreover, local courts may have broad discretion to reject enforcement of foreign awards. These
uncertainties may affect our judgment on the relevance of legal requirements and its ability to enforce our contractual rights or tort
claims. In addition, the regulatory uncertainties may be exploited through unmerited or frivolous legal actions or threats in attempts
to extract payments or benefits from us.

It is possible that a number
of laws and regulations may be adopted or construed to apply to us in Southeast Asia and elsewhere that could restrict our business segments.
Scrutiny and regulation of the business segments in which we operate may further increase, and we may be required to devote additional
legal and other resources to addressing these regulations. Changes in current