Risks associated with taxation. The tax treatment of an investment in Digital Payment Tokens and/or Security Tokens is uncertain and varies as between jurisdictions. They may be considered assets in certain jurisdictions and currency in others. Direct and indirect taxes such as income or capital gains, stamp duty, sales, goods and services, or value-added taxes may be imposed on transactions in Digital Payment Tokens and/or Security Tokens. Additionally, foreign tax authorities or other regulators may require banks, custodians or exchanges to report details on an investor’s holdings and, in some cases, require banks, custodians or exchanges to withhold taxes on investments on behalf of investors, to be paid to foreign tax authorities. Investors are recommended to seek specific tax advice to understand the tax treatment of their investments in Digital Payment Tokens and/or Security Tokens.
Risks associated with taxation. 11.1 Tax laws may change and this may have a negative impacton your Securities Tax law and practice is subject to change, possibly with retrospective effect and this could adversely affect the value of your Securities to you and/or their market value generally. Any such change may (i) cause the tax treatment of the relevant Securities to change from what you understood the position to be at the time of purchase; (ii) render the statements in this document concerning relevant tax law and practice in relation to the Securities inaccurate or inapplicable in some or all respectsto certain Securities or have the effect that this document does not include material tax considerations in relation to certain Securities; or (iii) give us the right to redeem the Securities early, if such change has the effect that (a) our performance under the Securities or (b) our hedging transaction relating to the Securities is unlawful or impracticable (see risk factor 6.1 (Your Securities may be redeemed prior to maturity due to a Change in Law Event, and you may losesome or all of your investment)).
