Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 157

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 157
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 companies have varying business models and focus areas and offer an overlapping
but limited feature set, 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.

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.

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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.