Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 21

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 21
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 agencies. 

In certain cases, regulations
may provide administrative discretion regarding enforcement, and regulations may be applied inconsistently across the industry, resulting
in increased costs for the Company that may not be incurred by competitors. Changes in laws, regulations or other industry practices
and standards, or interpretations of legal or regulatory requirements, may reduce the market for or value of our products or services
or render our products or services less profitable or obsolete. For example, policymakers may impose heightened customer due diligence
requirements or other restrictions, fees or taxes on remittances. Changes in the laws affecting the kinds of entities that are permitted
to act as money transfer agents (such as changes in requirements for capitalization or ownership) could adversely affect our ability
to distribute certain services and the costs of providing those services.

Major bank failure
or sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions, could
adversely affect our business, financial condition and results of operations. 

We face certain risks
in the event of a sustained deterioration of financial market liquidity, as well as in the event of sustained deterioration in the
liquidity, or failure, of our clearing, cash management and custodial financial institutions. In particular, in the event of a major
bank or credit card failure, we could be unable to process transactions via our mobile applications: In such a case, or if financial
liquidity deteriorates for other reasons, our ability to operate our business and our financial condition and results of operations could
be significantly harmed.

As our business
develops, we will need to implement enhanced compliance processes, procedures and controls with respect to the rules and regulations
that apply to our business.

Our success requires
significant public confidence in our ability to handle large and growing payment volumes and amounts of consumer funds, as well as comply
with applicable regulatory requirements. Any failure to manage consumer funds or to comply with applicable regulatory requirements could
result in the imposition of fines, harm our reputation and significantly diminish use of our products. In addition, if we are not in
compliance with anti-corruption laws and other laws governing the conduct of business with government entities and/or officials (including
local laws), we may be subject to criminal and civil penalties and other remedial measures, which could have an adverse impact on our
business, financial condition, results of operations and prospects.

13

If we cannot keep
pace with rapid developments and change in our industry and provide new services to