Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 136

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 136
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, nor do
we control more than one million users’ personal information, we would not be required to apply for a cybersecurity review by the
CAC. However, if the CSRC, CAC or other regulatory agencies later promulgate new rules or explanations requiring that we obtain their
approvals for this offering and any follow-on offering, we may be unable to obtain such approvals and we may face sanctions by the CSRC,
CAC or other PRC regulatory agencies for failure to seek their approval which could significantly limit or completely hinder our ability
to offer or continue to offer securities to our investors and the securities currently being offered may substantially decline in value
and be worthless.

On August 17, 2021, the State Council promulgated
the Regulations on the Protection of the Security of Critical Information Infrastructure, or the Regulations, which took effect on September 1,
2021. The Regulations supplement and specify the provisions on the security of critical information infrastructure as stated in the Cybersecurity
Review Measures. The Regulations provide, among others, that protection department of certain industry or sector shall notify the operator
of the critical information infrastructure in time after the identification of certain critical information infrastructure.

On August 20, 2021, the Standing Committee
of the NPC approved the Personal Information Protection Law (“PIPL”), which became effective on November 1, 2021. The
PIPL regulates collection of personal identifiable information and seeks to address the issue of algorithmic discrimination. Companies
in violation of the PIPL may be subject to warnings and admonishments, forced corrections, confiscation of corresponding income, suspension
of related services, and fines. We had not collected identifiable or sensitive personal information of individual end-users, such as ID
card numbers and real names, which means our potential access or exposure to customers’ personal information is limited. However,
in the event we inadvertently access or become exposed to customers’ personal identifiable information, then we may face heightened
exposure to the PIPL.

We cannot assure you that PRC regulatory agencies,
including the CAC, would take the same view as we do, and there is no assurance that we can fully or timely comply with such laws. In
the event that we are subject to any mandatory cybersecurity review and other specific actions required by the CAC, we face uncertainty
as to whether any clearance or other required actions can be timely completed, or at all. Given such uncertainty, we may be further required
to suspend our relevant business, shut down our website, or face