Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 17

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 17
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 make significant
judgment calls in applying anti-money laundering legislation and risk being found in non-compliance with such laws, which could have
an adverse impact on our business.

The regulatory
regime governing digital assets and offerings of digital assets is evolving and uncertain, and new regulations or policies may materially
adversely affect our development.

We may incorporate digital
assets, including cryptocurrencies, as part of our product offerings. The regulatory regime governing digital assets is uncertain and
rapidly evolving, and new regulations or policies may materially adversely affect the development and the value of our company. Regulation
of digital assets is currently undeveloped and likely to rapidly evolve as government agencies take greater interest in them. Regulation
also varies significantly among international, federal, state and local jurisdictions and is subject to significant uncertainty. Various
legislative and executive bodies in the United States and in other countries may in the future adopt laws, regulations, or guidance,
or take other actions, which may severely impact the digital assets market. In addition, any violations of laws and regulations relating
to the safeguarding of private information could subject us to fines, penalties or other regulatory actions, as well as to civil actions
by affected parties. Failure by us to comply with any laws, rules and regulations, some of which may not exist yet or are subject to
interpretation and may be subject to change, could result in a variety of adverse consequences, including civil penalties and fines.

11

The laws and regulations
indirectly affecting our industry are constantly evolving and failure to comply could adversely impact our business.

Our business is indirectly
subject to a wide range and increasing number of laws and regulations, as described below. Liabilities or loss of business resulting
from a failure by us, our agents or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof,
including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud and
other illicit activity, and increased costs or loss of business associated with compliance with those laws and regulations has had and
we expect will continue to have an adverse effect on our business, financial condition, results of operations, and cash flows. Our services
are subject to increasingly strict legal and regulatory requirements, including those intended to help detect and prevent money laundering,
terrorist financing, fraud, and other illicit activity. The interpretation of those requirements by judges, regulatory bodies and enforcement
agencies may change quickly and with little notice. Additionally, these requirements or their interpretations in one jurisdiction