Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 15

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 15
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, which includes buying and selling bitcoin but not the full range of bitcoin-based financial services offered by Fold.

Rewards Cards

We also compete with other consumer cryptocurrency and cash rewards
cards, such as the Venmo Credit Card, Gemini Credit Card, and Discover Cash Back Debit Card. Forbes recognized the Fold Card as the best
crypto rewards debit card for maximizing rewards for 2024.

Regulatory Environment

We operate in a rapidly evolving regulatory environment
governed by U.S. federal and state laws. These regulations cover most aspects of our business, including consumer finance and protection,
privacy and data protection, banking, and payments. Other relevant laws include those prohibiting unfair and deceptive acts or practices,
alongside public policy and general principles of equity, which may apply to our banking and payment activities. These laws and regulations
impact our business directly and indirectly, mainly through our partnerships with Marqeta and Sutton Bank, which provide our customers
with deposit accounts and debit cards, and with the Bitcoin Service Providers.

11

Fold has established a robust Customer Identification
Program (CIP) with the primary objective of forming a reasonable belief that we possess accurate information regarding the true identity
of each of Fold’s customers. Our services are exclusively intended for individuals aged 18 years or older in the United States
with national or residency status. To enhance our CIP processes, we have partnered with Sardine.ai, a third-party provider specializing
in supporting Know Your Customer (KYC) services, fraud detection, and sanctions screening efforts. Fold recognizes the dynamic nature
of the financial landscape and is committed to maintaining a robust risk management framework. We employ a sophisticated risk rating system
that continuously evaluates user profiles to enhance our security measures. This dynamic risk rating is subject to adjustments based on
a combination of transaction monitoring rules, news alerts, and ongoing sanctions screening. Our risk rating framework is designed to
adapt to changes in user behavior, transaction patterns, and external factors that may impact risk exposure. Our system regularly reviews
transactions against predefined monitoring rules to identify any unusual or potentially high-risk activities. Additionally, we actively
monitor negative news alerts that may have implications for a user’s risk profile.

The following summarizes certain aspects of the
various statutes and regulations. This summary is not a comprehensive analysis of all applicable laws and is qualified by reference to
the full text of statutes and regulations below.

Anti-Money Laundering (AML) and Sanctions Laws

Although Fold is not directly subject to the Bank