Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 43

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 43
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 the laws and regulations
in each respective market could have a material adverse effect on the overall economic growth of Asia. Such developments could adversely
affect our business and operating results, lead to reduction in demand for our game publishing and adversely affect our competitive position.
Many of the governments in Asia have implemented various measures to encourage economic growth and guide the allocation of resources.
Some of these measures may benefit the overall economy, but may have a negative effect on us. For example, our financial condition and
results of operations may be adversely affected by government control over foreign capital investments or changes in tax regulations.
Some Asia markets have historically experienced low growth in their GDP, significant inflation and/or shortages of foreign exchange.
We are exposed to the risk of rental and other cost increases due to potential inflation in the markets in which we operate. In the past,
some of the governments in Asia have implemented certain measures, including interest rate adjustments, currency trading band adjustments
and exchange rate controls, to control the pace of economic growth. These measures may cause decreased economic activity in Asia, which
may adversely affect our business, financial condition, results of operations and prospects.

In addition, some Asian
markets have experienced, and may in the future experience, political instability, including strikes, demonstrations, protests, marches,
coups d’état, guerilla activity or other types of civil disorder. These instabilities and any adverse changes in the political
environment could increase our costs, increase its exposure to legal and business risks, disrupt its office operations or affect its
ability to expand our user base.

Uncertainties with respect to the legal system in certain markets we operate in could adversely affect our operations.

The interpretation and enforcement
of laws and regulations involve uncertainties and inconsistencies. Since local administrative and court authorities and in certain cases,
independent organizations, have significant discretion in interpreting and implementing statutory provisions and contractual terms, it
may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we may enjoy in many
of the jurisdictions and localities in which we operate. Moreover, local courts may have broad discretion to reject enforcement of foreign
awards. These uncertainties may affect our judgment on the relevance of legal requirements and its ability to enforce our contractual
rights or tort claims. In addition, the regulatory uncertainties may be exploited through unmerited or frivolous legal actions or threats
in attempts to extract payments or benefits from us.

It is possible that a number
of laws and regulations may be adopted or construed to apply to us in Asia