REGULATORY

THAT has thoroughly researched and investigated the risks and regulatory environment relating to cryptocurrencies, blockchains, and exchanges in Australia. The same will be done for New Zealand, Singapore, the United States, the United Kingdom, and every other country into which the merchant ecosystem is expanded.

THAT will provide end users with digital currency exchange services directly integrated into the THAT app. All third parties associated with offering exchange services in the app will be required to directly engage with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the entity responsible for monitoring financial transactions to identify money laundering, organised crime, tax evasion, welfare fraud, and terrorism financing. Digital currency exchanges with fiat currency and vice versa (via the THAT app) will only be facilitated through Digital Currency Exchange (DCE) providers registered in Australia (with AUSTRAC), that meet all KYC & AML requirements. THAT will effectively be exchanged through a seamless app integration.

THAT will also directly engage with ASIC (the regulator in Australia), and the THAT app will be regulated as a ‘non-cash’ payments product, approved in the Australian market. When the merchant ecosystem expands into the rest of the world, THAT will engage with country regulators and law firms to get the appropriate guidance.

To fully understand the regulatory environment nuances of new geographic locations and territories, THAT will appoint leading law firms to submit legal advice that is used to develop the regulatory roadmap.

From a high level, the following risks have been identified for any user of THAT, and these risks should be considered before acquiring THAT:

• Regulatory environments can differ from country to country.

• Users should only acquire THAT from an official representative, an approved crypto exchange, or a peer utilising an official THAT wallet/app.

• THAT is backed by merchants in the merchant ecosystem; however, the merchant onboarding initiative may not yet be initiated in certain countries/jurisdictions.

• The market price of THAT could fluctuate as the overall supply and demand grow or contract over time, and buy/sell coin volumes may vary amongst different exchanges as well as global currency and investment markets.

• Ownership of THAT does not include any interest return, dividend yield, or equity participation as in the case of a company share or security token.

• Users should only use the official THAT app/THAT wallet when interacting with the THAT blockchain and accessing transaction balances, receipts, etc.

• Users must always securely store their wallet private keys/24-word mnemonic seed phrases if they opt to view and store them manually.