Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 17

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 17
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FDIC Banking Regulation

Our bank partner, Sutton Bank, is a member of
the FDIC and thus is subject to federal regulations designed to ensure its safety and soundness, as well as banking regulations established
by the State of Ohio where it is chartered. Due to our relationship with Sutton Bank, many laws and regulations that apply directly to
Sutton Bank indirectly impact us (and our products), and our partnership with Sutton Bank is subject to the supervision and enforcement
authority of the FDIC and the Ohio Department of Commerce.

12

Fold complies with all FDIC rules regarding the
display of statements concerning FDIC standards on our website and our application. We ensure that no information regarding the FDIC logo
and insurance is misrepresented to our customers as we are a financial services platform and not a FDIC insured bank.

State Money Transmission and Virtual Currency
Laws

As noted above, our Bitcoin Service Providers
are considered “financial institutions” under the Bank Secrecy Act and the regulations thereunder and are each required to
be registered as a “money service business” with the Financial Crimes Enforcement Network, an agency of the U.S. Treasury.
In addition, they are subject to state laws related to money transmission, which may require them to be licensed in individual states.
Finally, certain states have adopted laws or regulations that are specific to virtual currency-related activities within that state or
with residents of that state. For example, in 2014 New York adopted regulations requiring firms engaged in virtual currency-related activities
with New York residents to become licensed and to be subject to regulations and supervision imposed by the New York Department of Financial
Services.

We do not provide bitcoin related services to
customers resident in states where neither of our Bitcoin Service Providers has the required license.

Consumer Financial Protection Bureau (CFPB)
Regulations

The CFPB oversees financial institutions to ensure
adherence to federal consumer financial laws. We are required to stay abreast of CFPB’s constantly changing rules and regulations
to safeguard consumers and ensure that our marketing communications on social media, blogs, and websites are not considered deceptive,
abusive, or unfair.

Clear and Transparent Communication:

●All marketing materials must clearly and transparently disclose
product terms and conditions.

●Regularly review and update content to stay compliant.

Regular Audits:

●Work with our bank partners to conduct regular audits.

●Identify and rectify any potentially unfair or deceptive
practices.

Timely and Understandable Documentation:

●Ensure all documents are easily