Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 267

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 267
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. The IIJA Regulations will require us to invest substantially
in new compliance measures and that may require significant retroactive compliance efforts, which also could adversely affect our financial
position. Further, additional guidance may be issued, including, guidance on the treatment of non-custodial parties, which could impose
additional compliance efforts, and which would adversely affect our financial position.

39

Similarly, it is likely that new rules for reporting
crypto assets under the global “common reporting standard” as well as the “crypto-asset reporting framework” will
be implemented on our international operations, creating new obligations and a need to invest in new onboarding and reporting infrastructure.
Such rules are under discussion today by the member and observer states of the “Organization for Economic Cooperation and Development”
and by the European Commission on behalf of the member states of the European Union. These new rules may give rise to potential liabilities
or disclosure requirements for prior customer arrangements and new rules that affect how we onboard our customers and report their transactions
to taxing authorities. Additionally, the European Union has issued directives, commonly referred to as “CESOP” (the Central
Electronic System of Payment information), requiring payment service providers in the European Union to report cross-border fiat transactions
to taxing authorities on a quarterly basis beginning in January 2024. Any actual or perceived failure by us to comply with the above
or any other emerging tax regulations that apply to our operations could harm our business.

The nature of our business requires the application of complex
financial accounting rules, and there is limited guidance from accounting standard setting bodies on certain topics. If financial accounting
standards undergo significant changes, our operating results could be adversely affected.

The accounting rules and regulations that we must
comply with are complex and subject to interpretation by the Financial Accounting Standards Board (the “FASB”), the SEC, and
various other bodies formed to promulgate and interpret appropriate accounting principles. Recent actions and public comments from the
FASB and the SEC have focused on the integrity of financial reporting and internal controls and many companies’ accounting policies
are being subjected to heightened scrutiny by regulators and the public. Further, there has been limited precedent for the financial accounting
of crypto assets and related valuation and revenue recognition. Moreover, a change in these principles or interpretations could have a
significant effect on our reported financial results, and may even affect the reporting of transactions completed before the announcement
or effectiveness of a change.

For example, on March 31, 2022, the staff of the