Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 51

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 51
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 regulatory obligations may cause us to incur extraordinary expenses. Furthermore, we 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 dissolve and liquidate.

We face uncertainties relating to whether
cloud-mining operations and a particular digital asset will be deemed as “security” in any relevant jurisdiction, and we may
be subject to regulatory scrutiny, investigations, fines, and other penalties if such digital asset is deemed to be dealing with “security,”
which may adversely affect our business, financial condition and results of operations.

As digital assets have grown
in both popularity and market size, governments around the world have reacted differently, with certain governments deeming digital assets
illegal, and others allowing their use and trade without restriction. In some jurisdictions, such as in the U. S., digital assets are subject
to extensive, and in some cases overlapping, unclear and evolving regulatory requirements.

Bitcoin is the oldest and
most well-known form of digital asset. Bitcoin and other forms of digital assets have been the source of much regulatory consternation,
resulting in differing definitional outcomes without a single unifying statement. Bitcoin and other digital assets are viewed differently
by different regulatory and standards setting organizations globally as well as in the United States on the federal and state levels.
For example, the Financial Action Task Force considers a digital asset as currency or an asset, and the U. S. Internal Revenue Service
(“ IRS”) considers a digital asset as property and not currency. Further, the IRS has indicated that general tax principles
that apply to property transactions should also apply to transactions involving virtual currency, although there is no indication yet
whether courts or other tax regulators will follow this classification.

Furthermore, in the several
applications to establish an exchange traded fund (“ ETF”) of digital assets, and in the questions raised by the SEC staff
under the Investment Company Act, no clear principles emerge from the regulators as to how they view these issues and how to regulate
digital assets under the applicable securities acts. On January 10, 2024, the SEC approved the listing and trading of a number of spot
bitcoin exchange-traded product (“ ETP”) shares. In his statement on the approval of spot bitcoin ETPs, SEC chairman Gary Gensler
cautioned that such approval does not signal SEC’s willingness to approve listing standards for crypto asset securities,