Company: CNCKW
Filing Date: 2025-04-10
Form Type: 424B3
Source: 0001213900-25-030417
Chunk: 156

Company: Coincheck Group N.V.
Filing Date: 2025-04-10
Form: 424B3
Chunk 156
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 of end users. Alternatively, hybrid regulatory approaches may be adopted, where end users will be subject to direct regulation unless they engage in the crypto asset markets through regulated service providers which will themselves be subject to direct regulation. 101 The Japanese cryptocurrency market is a large and underpenetrated market, representing a compelling opportunity in East Asia. Considerable transaction volume of cryptocurrencies on exchanges in Japan. Japan’s domestic cryptocurrency market has had periods of strong transaction volume despite recent periods of volatility. In September 2024, the cash trading volume on domestic cryptocurrency exchanges, including our cryptocurrency exchanges, was approximately ¥2.8 trillion, after reaching much higher volumes during 2021. The below graph illustrates recent trends in trading volume: Source:Created by us based on public information made available by the JVCEA. Potential for growth in the number of registered accounts According to the Japan Securities Dealers Association, the number of brokerage accounts held by individuals in Japan was approximately 37 million as of September 30, 2024. However, according to the JVCEA, there were only approximately 11.8million accounts engaged in trading of crypto assets, including both physical transactions and margin trading, as of December 31, 2024. We believe this shows real potential for growth in investment and trading of crypto assets by Japanese individuals. While Japan is the fourth largest global economy, only 7.7% of the Japanese population owns crypto assets as of February 2024 (versus 17% of the United States population as of January 2024), according to data from the JVCEA and Morning Consult. We believe that this shows the potential for further development of the Japanese crypto asset market. We believe that the Japanese public is highly engaged and willing to participate in the crypto asset revolution and encouraged by the country’s thoughtful crypto regulation model, which is designed around protecting the consumer. In addition, there is a large opportunity to cater to institutional demand in a market with significant regulatory, language, and cultural barriers to entry. Declines in crypto asset prices seen in 2022, negative 102 publicity following the bankruptcy of FTX in November 2022, recent lawsuits filed against large crypto exchanges in June 2023, recent settlements by crypto exchanges and convictions of prominent figures in the crypto industry in November 2023 and ongoing lawsuits by both the SEC and crypto industry leaders in early 2024, have impacted our monthly users, which is on a declining trend since its peak in the first quarter of the year ended Ma rch 31,