Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 530

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 530
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chains to
effectuate our ongoing business, it is possible that such digital ledgers contain prohibited depictions without our knowledge or consent.
To the extent government enforcement authorities enforce these and other laws and regulations that are impacted by decentralized distributed
ledger technology, we may be subject to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties,
all of which could harm our reputation and affect the value of our Ordinary Shares.

59

If regulatory changes
or interpretations of our activities require our registration as a money services business (“MSB”) under the regulations promulgated
by FinCEN under the authority of the U.S. Bank Secrecy Act (“BSA”), or otherwise under state laws, we may incur significant
compliance costs, which could be substantial or cost-prohibitive. If we become subject to these regulations, our costs in complying with
them may have a material negative effect on our business and the results of our operations.

To the extent that our
activities cause us to be deemed a money service business (MSB) under the regulations promulgated by FinCEN under the authority of the
U.S. Bank Secrecy Act, we may be required to comply with FinCEN regulations, including those that would mandate us to implement anti-money
laundering programs, make certain reports to FinCEN and maintain certain records. The Digital Asset Anti-Money Laundering Act of 2022
(DAAMLA) was introduced on December 14, 2022 in the Senate. The bill would authorize FinCEN to designate digital asset wallet providers,
miners, validators, and other select network participants as MSBs. This designation would require these parties to register with FinCEN
and would extend to these parties’ anti-money laundering (AML) responsibilities under the BSA.

To the extent that our
activities cause us to be deemed an MSB and/or a “money transmitter” (“MT”) or equivalent designation, under state
law in any state in which we operate (currently, Texas, Kentucky and New York), we may be required to seek a license or otherwise register
with a state regulator and comply with state regulations that may include the implementation of AML programs, maintenance of certain records
and other operational requirements. Such additional federal or state regulatory obligations may cause us to incur extraordinary expenses,
possibly affecting an investment in our securities in a materially adverse manner. Furthermore, the Company and our service providers
may not be capable of complying with certain federal or