eToro SPAC Presentation Deck
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Risk factors (7/12)
8. Our collection, use, storage, disclosure, transfer and other processing of personal information could give rise to significant costs and liabilities, including as a result of
governmental regulation, conflicting legal requirements or differing views of personal privacy rights, which may have a material and adverse impact on our business, financial
condition and results of operations.
9. The requirement to maintain regulatory capital may affect our ability to distribute profits and/or restrict expansion, which may affect our ability to conduct our business and
may reduce profitability.
Risks Related to Third Parties
1. We rely on third parties to perform certain key functions, including for services related to cloud computing services, data centers, payment processing and liquidity, and their
failure to perform those functions could result in the interruption of our operations and systems and could result in significant costs and reputational damage to us and losses
to our customers.
2. We depend on major mobile operating systems and third-party platforms for the distribution of certain products. If Google Play, the Apple App Store, or other platforms
prevent customers from downloading our apps, our ability to grow may be adversely affected.
Risk Factors Related to Digital Assets and Digital Asset Markets
1. The future development and growth of digital assets is subject to a variety of factors that are difficult to predict and evaluate. If digital assets do not grow as we expect, our
business, operating results, and financial condition could be adversely affected. Digital assets such as Bitcoin, Ethereum, XRP and other cryptocurrencies were introduced
within the past decade, and the medium-to-long term value of our digital asset services is subject to a number of factors relating to the capabilities and development of
blockchain and cryptographic technologies, the vulnerability to future technological development and the fundamental investment characteristics of digital assets.
2. The legal and regulatory regime governing digital assets is uncertain and still developing, and changes, clarifications or actions related to digital assets may adversely affect
our business.
• For example, there is currently no uniformly applicable legal or regulatory regime governing digital assets in Europe.
• A particular digital asset's status as a "security", or the treatment of digital currency for tax purposes, in any relevant jurisdiction is subject to a high degree of uncertainty
and if we are unable to properly characterize a digital asset or assess its tax treatment, we may be subject to regulatory scrutiny, investigations, fines, and other penalties,
which may adversely affect our business, operating results, and financial condition.
• Our business is subject to additional risk because digital assets are subject to heightened scrutiny including under anti-money laundering, counter terrorism financing and
sanctions regulations.View entire presentation