Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 123

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 123
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 securities to significantly decline or be worthless if the Chinese government may exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers.

The recently issued Opinions on Strictly Cracking
Down on Illegal Securities Activities emphasized the need to strengthen the administration over illegal securities activities and the
supervision on listings by China-based companies in foreign countries, and proposed to take effective measures, such as promoting the
construction of relevant regulatory systems to deal with the risks and incidents faced by China-based companies listed in foreign countries,
and provided that the special provisions of the State Council on offering and listing by those companies in foreign countries limited
by shares will be revised and therefore the duties of domestic industry competent authorities and regulatory agencies will be clarified.
As these opinions were newly issued and there are no further explanations or detailed rules and regulations with respect to such opinions,
there are still uncertainties regarding the interpretation and implementation of such opinions. And new rules or regulations promulgated
in future could impose additional requirements on us.

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In addition, on July 10, 2021, the Cyberspace
Administration of China issued a revised draft of the Cybersecurity Review Measures for public comments, according to which, among others,
an “operator of critical information infrastructure” or a “data processor”, who has personal information of more
than one million users and is going to list in foreign countries, must report to the relevant cybersecurity review office for a cybersecurity
review. On December 28, 2021, the Cyberspace Administration of China jointly with the relevant authorities formally published Measures
for Cybersecurity Review (2021) which took effect on February 15, 2022 and replace the former Measures for Cybersecurity Review
(2020). Measures for Cybersecurity Review (2021) stipulates that operators of critical information infrastructure purchasing network
products and services, and online platform operator (together with the operators of critical information infrastructure, the “Operators”)
carrying out data processing activities that affect or may affect national security, shall conduct a cybersecurity review, any online
platform operator who controls more than one million users’ personal information must go through a cybersecurity review by the cybersecurity
review office if it seeks to be listed in a foreign country. Since we are not an Operator, nor do we control more than one million users’
personal information, we would not be required to apply for a cybersecurity review under the Measures for Cybersecurity Review (2021).

However, if the