Distributed ledger technologies, businesses and activities as well as cryptocurrencies
and cryptocurrency-related businesses and activities are generally unregulated
worldwide, but numerous regulatory authorities across jurisdictions have been
outspoken about considering the implementation of regulatory regimes which govern
distributed ledger technologies, businesses and activities as well as cryptocurrencies
and cryptocurrency-related businesses and activities. The Company or the
Tokens may be affected by newly implemented regulations relating to distributed
ledger technologies, businesses and activities as well as cryptocurrencies and
cryptocurrency-related businesses and activities, including having to take measures
to comply with such regulations, or having to deal with queries, notices, requests or
enforcement actions by regulatory authorities, which may come at a substantial cost
and may also require substantial modifications to the Company’s business platform
that is yet to be developed and/or the anticipated Token functionality. This may
impact the appeal or practicality or functionality of the Company’s business platform
that is yet to be developed and/or the anticipated Token functionality for users and
result in decreased usage of and demand for the Company’s business platform and
the Tokens. Further, should the costs (financial or otherwise) of complying with such
newly implemented regulations exceed a certain threshold, maintaining the Company’s
business platform that is yet to be developed and/or developing, structuring, licensing
and/or launching the Token functionality may no longer be commercially viable,
and the Company may opt to discontinue the Company’s business platform that is
yet to be developed and/or the anticipated Token functionality, and/or the Tokens.
Further, it is difficult to predict how or whether governments or regulatory authorities
may implement any changes to laws and regulations affecting distributed ledger
technology and its applications, including the Company’s business platform that is yet
to be developed and/or the anticipated Token functionality, and/or the Tokens.
The Company may also have to cease operations in a jurisdiction that makes it illegal
to operate in such jurisdiction, or make it commercially unviable or undesirable
to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In
scenarios such as the foregoing, the utility, liquidity, and/or trading price of Tokens
will be adversely affected and/or Tokens may cease to be traded