Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 134

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 134
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, have enforced data privacy and protection laws and regulations with varying and evolving standards and
interpretations. In April 2020, the Chinese government promulgated Cybersecurity Review Measures, which came into effect on June 1,
2020. According to the Cybersecurity Review Measures, operators of critical information infrastructure must pass a cybersecurity review
when purchasing network products and services which do or may affect national security.

In November 2016, the Standing Committee
of China’s National People’s Congress passed China’s first Cybersecurity Law (“CSL”), which became effective
in June 2017. The CSL is the first PRC law that systematically lays out the regulatory requirements on cybersecurity and data protection,
subjecting many previously under-regulated or unregulated activities in cyberspace to government scrutiny. The legal consequences of violation
of the CSL include penalties of warning, confiscation of illegal income, suspension of related business, winding up for rectification,
shutting down the websites, and revocation of business license or relevant permits. In April 2020, the Cyberspace Administration
of China and certain other PRC regulatory authorities promulgated the Cybersecurity Review Measures, which became effective in June 2020.
Pursuant to the Cybersecurity Review Measures, operators of critical information infrastructure must pass a cybersecurity review when
purchasing network products and services which do or may affect national security. On July 10, 2021, the Cyberspace Administration
of China issued a revised draft of the Measures for Cybersecurity Review for public comments (“Draft Measures”), which required
that, in addition to “operator of critical information infrastructure,” any “data processor” carrying out data
processing activities that affect or may affect national security should also be subject to cybersecurity review, and further elaborated
the factors to be considered when assessing the national security risks of the relevant activities, including, among others, (i) the
risk of core data, important data or a large amount of personal information being stolen, leaked, destroyed, and illegally used or exited
the country; and (ii) the risk of critical information infrastructure, core data, important data or a large amount of personal information
being affected, controlled, or maliciously used by foreign governments after listing abroad. The Cyberspace Administration of China has
said that under the proposed rules companies holding data on more than 1,000,000 users must now apply for cybersecurity approval when
seeking listings in other nations because of the risk that such data and personal information