Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 60

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 60
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 implementation and interpretation of both are subject
to uncertainties, and (ii) we have not been involved in any investigations on cyber security review made by the CAC on such basis, nor
have we received any inquiries, notices, warnings, or sanctions from any competent PRC regulatory authorities related to cybersecurity,
data security and personal data protection, we believe, as of the date of this annual report, we are in compliance with the existing PRC
laws and regulations on cybersecurity, data security and personal data protection issued by the CAC. The PRC government authorities also
further enhanced the supervision and regulation of cross-border data transmission. On July 7, 2022, the CAC promulgated the Measures for
the Security Assessment of Cross-border Data Transfer, which took effect on September 1, 2022. In accordance with such measures, data
processors will be subject to security assessment conducted by the CAC prior to any cross-border transfer of data if the transfer involves
(i) important data; (ii) personal information transferred overseas by operators of critical information infrastructure or a data processor
that has processed personal data of more than one million persons; (iii) personal information transferred overseas by a data processor
which has already provided personal data of 100,000 persons or sensitive personal data of 10,000 persons overseas since January 1 of the
preceding year; or (iv) other circumstances as required by the CAC. In addition, any cross-border data transfer activities conducted in
violation of the Measures for the Security Assessment of Cross-border Data Transfer before the effectiveness of such measures are required
to be rectified within six months of the effectiveness date thereof. Since these measures are relatively new, there are still substantial
uncertainties with respect to the interpretation and implementation of these measures in practice and how they will affect our business
operation.

In addition, internet information
in mainland China is regulated from a national security standpoint. According to the PRC National Security Law, institutions and mechanisms
for national security review and administration will be established to conduct national security review on key technologies and IT products
and services that affect or may affect national security. The PRC Data Security Law took effect in September 2021 and provides for a security
review procedure for the data activities that may affect national security. It also introduces a data classification and hierarchical
protection system based on the importance of data in economic and social development, as well as the degree of harm it will cause to national
security, public