Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 117

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 4
Chunk 117
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 obtained.

Government Regulation

Due to the relatively short
history of digital assets, and their emergence as a new asset class, government regulation of blockchain and digital assets has been constantly
evolving worldwide, with increased interest expressed by the United States and other international government regulators. For example,
the Cyber-Digital Task Force of the U. S. Department of Justice published a report titled “ Cryptocurrency: An Enforcement
Framework” in October 2020 that detailed the Department’s view with respect to digital assets and the tools at the Department’s
disposal to deal with threats posed by digital assets. In March 2021, the nominee for Chair of the U. S. Securities and Exchange
Commission expressed the need for investor protection along with promotion of innovation in the digital asset space.

In addition, various foreign
jurisdictions either have adopted, or may adopt, laws, regulations or directives that affect digital assets, digital asset networks, and
their users and participants. Such laws, regulations or directives may conflict with those of the United States, may negatively impact
the acceptance of digital assets by users, merchants and service providers outside of the United States, and may therefore impede
the growth of digital assets. A number of Eastern European and Asian countries currently have a more restrictive stance toward digital
assets and, thereby, have reduced the rate of expansion of digital asset use, as well as digital asset transaction processing, in each
of those countries.

Any restrictions imposed by
a foreign government could force us to restructure operations, perhaps significantly, which could result in significant costs and inefficiencies
that harm our profitability, or even cause us to cease operations in the applicable jurisdiction. Digital asset is a recent technological
innovation and the regulatory schemes to which mining and trading digital asset may be subject have not been fully explored or developed
by foreign jurisdictions. Thus, our operations face an uncertain regulatory landscape in many foreign jurisdictions.

United States

Government regulation of blockchain
and digital assets is under active consideration by the United States federal government via its agencies and regulatory bodies.
State and local regulations also may apply to our activities and other activities in which we may participate in the future. Other governmental
or semi-governmental regulatory bodies have shown an interest in regulating or investigating companies engaged in blockchain or digital
asset businesses. For instance, the SEC has taken an active role in regulating the use of public offerings of proprietary coins (so-called “initial
coin offerings”) and has made statements and official promulgations as to the status of certain digital assets as