Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 100

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 100
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 that our activities cause us to
be deemed a money service business (MSB) under the regulations promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act,
we may be required to comply with FinCEN regulations, including those that would mandate us to implement anti-money laundering programs,
make certain reports to FinCEN and maintain certain records. The Digital Asset Anti-Money Laundering Act of 2022 (DAAMLA) was introduced
on December 14, 2022 in the Senate. The bill would authorize FinCEN to designate digital asset wallet providers, miners, validators, and
other select network participants as MSBs. This designation would require these parties to register with FinCEN and would extend to these
parties’ anti-money laundering (AML) responsibilities under the BSA.

To the extent that our activities cause us to
be deemed an MSB and/or a “money transmitter” (“MT”) or equivalent designation, under state law in any state in
which we operate (currently, Texas, Kentucky and New York), we may be required to seek a license or otherwise register with a state regulator
and comply with state regulations that may include the implementation of AML programs, maintenance of certain records and other operational
requirements. Such additional federal or state regulatory obligations may cause us to incur extraordinary expenses, possibly affecting
an investment in our securities in a materially adverse manner. Furthermore, the Company and our service providers may not be capable
of complying with certain federal or state regulatory obligations applicable to MSBs and MTs. If we are deemed to be subject to and determine
not to comply with such additional regulatory and registration requirements, we may act to leave a particular state or the United States
completely. Any such action would be expected to materially adversely affect our operations.

Current regulation of the exchange of bitcoins under the CEA by the CFTC is unclear; to the extent we become subject to regulation under the CFTC in connection with our exchange of bitcoin, we may incur additional compliance costs, which may be significant.

Current legislation, including the Commodities
Exchange Act of 1936, as amended (the “CEA”) is unclear with respect to the exchange of bitcoins. Changes in the CEA or the
regulations promulgated thereunder, as well as interpretations thereof and official promulgations by the Commodity Futures Trading Commission
(“CFTC”), which oversees the CEA, may impact the classification of bitcoins and