Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 183

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 5
Chunk 183
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transfer the subject crypto assets to or from customers’ segregated cold wallets. We do not use borrowed crypto 
assets for proprietary trading or to enter into unhedged positions. We have not experienced difficulties in borrowing 
crypto assets from our customers or in executing cover transactions with our cover counterparties in order to support 
the operation of our Marketplace platform. Nevertheless, in the event that borrowing from our customers becomes 
limited or unavailable, we would seek to secure the crypto assets necessary to facilitate the operation of our 
Marketplace platform by borrowing from third parties. However, there is no guarantee that we would be able to find 
third parties to borrow the needed amount of crypto assets, in which case we would seek to purchase such crypto 
assets in the market, exposing us to price risk. In our Marketplace platform trading operations, we seek to limit our 
net open position at any given time by setting internal policy threshold amounts for each cryptocurrency supported 
and executing cover transactions when the relevant threshold is reached.

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We have not invested in cryptocurrencies for our own account (apart from inventory we acquire to support 
liquidity for transactions on our Marketplace platform), but we may do so in the future.
Under IFRS Accounting Standards, there are no accounting standards specifically related to transactions for 
crypto assets. In order to determine the accounting treatment, we follow the requirements of IAS 8 Accounting 
Policies, Changes in Accounting Estimates and Errors, and refer to the conceptual framework for financial 
reporting, and standards related to similar matters. In this context, we consider various factors to evaluate whether 
we have control for accounting purposes over crypto assets, and account for these transactions accordingly. See Note 
13 to our consolidated financial statements for the year ended March 31, 2025 included in this report for more 
information on our accounting treatment for crypto assets held.
Under the Payment Services Act, we are defined as a Crypto Asset Exchange Service Provider (CAESP) 
and are subject to certain regulations regarding the management of the crypto assets of our customers. For example, 
we must segregate all fiat currency and cryptocurrencies of our customers from our own property, keep 
cryptocurrencies we own in separate wallets, and keep at least 95% of our customers’ cryptocurrencies in wallets 
that are not connected to the internet, or “cold wallets.” For more information on the regulations applicable to our 
business and our holdings of crypto assets, see “Business — Regulation.” Accordingly, we have separate wallets for 
our owned cryptocurrencies and those deposited by our