Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 249

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 249
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 are non-PRC resident enterprises, our
former PRC subsidiaries may be requested to assist in the filing under SAT Circular 7 and/or Circular 37. As a result, we may be required
to expend valuable resources to comply with SAT Circular 7 and/or Circular 37 or to request the relevant transferors from whom we purchase
taxable assets to comply with these circulars, or to establish that our Company should not be taxed under these circulars, which may have
a material adverse effect on our financial condition and results of operations.

64

Risks Related to Singapore
Government Regulations

Regulations on
Payment Services in Singapore

Staking activities will
be performed by one of our subsidiaries, Bit Digital Singapore Pte. Ltd. (“BTSG”) which is incorporated under the laws of
the Republic of Singapore and currently does not possess any financial regulatory licenses.

BTSG intends to use its
own proprietary assets to trade and stake ETH, which is defined as a digital payment token (“DPT”) (as defined under the Payment
Services Act 2019 of Singapore (“PS Act”) with licensed or otherwise exempt third party service providers under applicable
laws (including the PS Act or the Securities and Futures Act 2001 of Singapore (“SFA”)). BTSG’s current business practices
in Singapore are subject to the following regulatory risks, as described herein.

The Monetary Authority
of Singapore (“MAS”) regulates the provision of payment services in Singapore under the PS Act. Unless excluded or exempt,
an entity must obtain the relevant license to carry on a business in providing regulated payment services under the PS Act, which include
account issuance service, e-money issuance service, domestic money transfer service, cross-border money transfer service, merchant acquisition
service, digital payment token service, and money-changing service.

Under
the PS Act, licensees may be subject to obligations relating to general approval requirements for changes of control, appointment
and removal of CEOs and directors, general notification and record-keeping requirements, audit requirements, base capital
requirements, anti-money laundering requirements (see below), the requirement to furnish security (for a major payment institution),
the requirement to safeguard customer monies (for a major payment institution), and other applicable requirements. Licensees are
expected to implement certain systems, processes and controls in line with MAS’ Guidelines on Risk Management Practices
applicable to financial institutions in Singapore. BTSG intends to trade and stake ETH on its own account, not to provide any
payment service to customers and not to carry