Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 541

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 541
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 carry on a business of “dealing in” DPT as a service to any third-party. In
particular, BTSG: (i) will use its own proprietary money for trading and/or staking (no customer money is used); (ii) will not trade
or stake DPTs for or on behalf of customers; (iii) will not market or advertise that it provides any such service to customers; (iv)
will not enter into trades with counterparties as a matter of course (e.g. at the customer’s request) or stake DPT at a
customer’s request; (v) will only enter into trades or staking arrangements based on its own personal/proprietary needs; (vi)
will not collect any fees from counterparties (instead, it is the counterparties that are service providers, providing services to
BTSG); and (vii) will only trade or stake through or with licensed or licensed service providers. Accordingly, BTSG is unlikely to
be regarded as carrying on a business in providing a “digital payment token service” under the PS Act’s current
regulatory regime.

However, there remains
a risk that MAS may take a more restrictive view, with the trading of ETH being construed as “dealing in DPT”, requiring a
license under the PS Act. In addition, laws and regulations related to payments and financial services are evolving in Singapore, and
changes in such laws and regulations could affect our business practices in the manner that we have done, expect to do, or at all. MAS
could enact new regulations, change regulations that were previously adopted, modify, through supervision or enforcement, past regulatory
guidance, or interpret existing regulations in a manner different or stricter than have been previously interpreted, any of which could
adversely affect or require us to change BTSG’s business practices in Singapore.

65

Regulations on
Anti-money Laundering and Countering the Financing of Terrorism (“AML/CFT”)

We and our partners who
work with us are required to comply with certain anti-money laundering requirements in the jurisdictions where we and our partners operate.
In Singapore, regulated financial institutions must comply with all applicable AML/CFT obligations, including the relevant AML/CFT Notices
and Guidelines issued by MAS (e.g. the Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism – Digital
Payment Token Service and the Guidelines to Notice PSN02 on Prevention of Money Laundering and Countering the