Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 251

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 251
---
 of Terrorism -
Digital Payment Token Service). Among other things, the AML/CFT Notices require financial institutions to put in place robust controls
to detect and deter the flow of illicit funds through Singapore’s financial system, identify and know their customers (including
beneficial owners), conduct regular account reviews, and to monitor and report any suspicious transaction.

The primary AML/CFT legislation
in Singapore that are of general application are the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits)
Act, Chapter 84A of Singapore (the “CDSA”) and Terrorism (Suppression of Financing) Act, Chapter 325 of Singapore (the “TSOFA”).
The CDSA provides for the confiscation of benefits derived from, and to combat, corruption, drug dealing and other serious crimes. Generally,
the CDSA criminalizes the concealment or transfer of the benefits of criminal conduct as well as the knowing assistance of the concealment,
transfer or retention of such benefits. The TSOFA criminalizes terrorism financing and prohibits any person in Singapore from dealing
with or providing services to a terrorist entity, including those designated pursuant to the TSOFA. The CDSA and the TSOFA also require
suspicious transaction reports to be lodged with the Suspicious Transaction Reporting Office. If any person fails to lodge the requisite
reports under the CDSA and the TSOFA, it may be subject to criminal liability. In addition, financial institutions, non-financial institutions
and individuals in Singapore are required to comply with financial sanction requirements in relation to individuals and entities designated
by the United Nations.

As BTSG does not currently
hold any financial regulatory licenses in Singapore, it only complies with the CDSA and the TSOFA, the primary AML/CFT legislation in
Singapore that are of general application (and does not comply with PSN02 and the related guidelines). It is possible that financial institutions
in Singapore may not be willing to offer financial services to BTSG due to concerns on the origin of BTSG’s funds, from an AML/CFT
perspective.

The Company expects to
acquire digital assets on liquid, regulated exchanges with robust anti-money laundering (“AML”) and know-your-client (“KYC”)
policies and procedures. However, there are no assurances that cryptocurrency trading platforms on which the Company transacts business
will continue to operate effectively, maintain adequate liquidity or that their AML and KYC policies and procedures will be effective,
which could negatively impact the Company