Company: OWLS
Filing Date: 2025-01-24
Form Type: DRS/A
Source: 0000950123-25-000547
Chunk: 195

Company: OBOOK HOLDINGS INC.
Filing Date: 2025-01-24
Form: DRS/A
Chunk 195
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 currency regulations

We are subject to certain licensing and supervisory frameworks as a result of our digital wallet offering, through which customers could store
certain virtual currencies. The laws and regulations applicable to virtual currency are evolving and subject to interpretation and change. Therefore, our current and future virtual currency services may be or become subject to additional licensing,
regulatory requirements and oversight by other state and federal authorities. In recent years, the SEC and U.S. state securities regulators have stated that certain digital assets or digital asset products may be classified as securities under U.S.
federal and state securities laws, and in the case of the SEC, has made public statements on this topic; however, these statements are not binding or definitive guidance, and there is currently no certainty under the SEC’s application of the
applicable legal test as to whether particular crypto assets, products, or services would be deemed securities. A number of enforcement actions and regulatory proceedings have since been initiated against digital assets and digital asset products
and their developers and proponents, as well as against trading platforms that support digital assets.

We have established policies and
practices to evaluate each digital asset we consider for usage in our services, to assess whether any given digital assets, or whether the development, issuance, and use of such assets, have characteristics that make them more or less likely to
implicate U.S. federal securities laws. Our assessment is informed by the Howeytest for whether any given digital assets would be considered a “security” within the

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meaning of Section 2(a)(1) of the Securities Act, as well as recent enforcement actions. The primary type of digital asset that our business operations currently involve is stablecoin. Any of our
assessment on any digital asset is a risk-based judgment and does not constitute a legal determination binding on regulators or the courts.

Several foreign governments have also issued similar warnings cautioning that digital assets may be deemed to be securities under the laws of
their jurisdictions. We will also become subject to additional regulations as we plan to expand our services internationally. The EU newly adopted the Markets in Crypto-Assets Regulation (MiCAR) and Brazil intends to introduce the Cryptoassets Act,
which may affect our plan to expand operations in these jurisdictions. We are currently assessing the regulatory landscapes and exploring our compliance approach in these jurisdictions.

Consumer protection

The Consumer Financial Protection Bureau and other U.S. and foreign regulatory and law enforcement agencies regulate financial products and
enforce consumer protection laws, including those applicable to credit, deposit, and payment services, and