Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 36

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 36
---
 subject to significant
uncertainties regarding future regulations pertaining to the holding, using or mining of Bitcoin and other digital assets. While Bitcoin
and other digital assets have gradually gained more market acceptance in many countries, digital mining and blockchain transactions are
anonymous and may be used for black market transactions, money laundering, tax evasion or other illegal activities. Some jurisdictions
have introduced restrictions over the uses of digital assets, including the use of digital assets as a medium of exchange, the conversion
between digital assets and fiat currencies or between digital assets, the provision of trading and other services related to digital assets
by financial institutions and payment channels, and initial coin offerings and other means of capital raising based on digital assets.
Our existing policies and procedures against such activities may not completely eliminate instances of money laundering and other illegal
or improper activities by other parties utilizing our cloud-mining services. We cannot assure you that there it will be able to detect
all instances of money laundering or other illegal or improper activities.

With advances in technology,
global digital asset mining industry is likely to undergo significant changes in the future. It remains uncertain whether we will be able
to cope with, or benefit from, those changes. In addition, as the mining of Bitcoin and other digital assets mining uses sophisticated
devices that require a significant amount of electricity supply, future developments in the regulation of energy consumption, including
possible restrictions on energy usage in the jurisdictions where we operate may also cause us to adjust our business operations and adversely
affect the demand for our services or products. There have been public backlashes surrounding the environmental impacts of Bitcoin and
other digital assets mining, particularly the large consumption of electricity, and governments of various jurisdictions have adopted
measures, such as limit internet access and power supply to respond. For example, in the United States, certain local governments
have discussed measures to address environmental impacts of digital assets mining operations, such as the high electricity consumption
of digital assets mining activities. If the public opinion against or government measures restricting or prohibiting digital asset mining
activities continue, such development could have a material and adverse effect on our business, financial condition and results of operations.

Any such government action
could also have a deleterious impact on, or result in an increase in the volatility of the price of digital assets and miners. Moreover,
we may have to adjust our business or to discontinue mining operations, or relocate to other jurisdictions in response to adverse change
in regulations or government actions. However, such process would likely result in significant costs and disruption of