Risk Factors Update Summary

• Recently started international expansion exposes to significant new risks, requiring additional resources and management attention.
• Increased exposure to fourth-party risks due to common suppliers or vendors, impacting data security.
• Ongoing SEC discussions regarding potential classification of supported cryptocurrencies as securities, affecting operations.
• Incorporating AI technologies presents business risks, including regulatory scrutiny, compliance challenges, and reputational issues.
• Expansion into the U.K. discussed in Note 17, with potential privacy, data security, and data protection risks.
• SEC charges against Binance and Coinbase for unregistered securities trading, impacting supported cryptocurrencies.
• Potential impact on tax reporting and operations due to new U.S. reporting requirements and proposed regulations.
• Failure to comply with evolving cryptocurrency laws and regulations could negatively impact trading volumes.
• Regulatory changes proposed by the SEC and NASAA could impact technology use and customer interactions.
• Enhanced risk management processes and monitoring for cryptocurrency market risks post-2022 Crypto Bankruptcies.
• Expansion into international markets requires compliance with anti-bribery laws, financial regulations, and industry standards.
• Delay in notification from third parties resulted in processing errors, impacting customer engagement and revenue.
• Use of AI technologies poses risks of unintended consequences, biases, and regulatory challenges, affecting business reputation.
• Cybersecurity incidents, such as the November 2021 data security breach, highlight ongoing risks to customer data and operations.