Company: CNCKW
Filing Date: 2025-03-27
Form Type: F-1/A
Source: 0001013762-25-003470
Chunk: 49

Company: Coincheck Group N.V.
Filing Date: 2025-03-27
Form: F-1/A
Chunk 49
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 beta version of which we launched in March 2021. While NFTs and cryptocurrencies are similar in that both are based on blockchain technology, unlike cryptocurrency units, which are fungible, NFTs have unique identification codes and often reference content in areas such as games, 25 arts and sports. NFTs are a relatively new and emerging type of digital asset, and the regulatory, commercial, and legal framework governing NFTs is expected to evolve both in Japan and other jurisdictions. The trading of NFTs potentially implicates issues regarding a range of matters, including, but not limited to, intellectual property rights, privacy and cybersecurity, fraud, anti -moneylaundering, money transmission, sanctions, and currency, commodity, and securities law compliance. To manage risks associated with the trading of NFTs, we have established an approval process conducted in three stages, with our NFT Business Development Department performing the initial review and the Legal & Compliance Department performing the secondary review prior to the final review by an internal review committee, based on the following criteria: •whether the NFT is a non -substitutabletoken recorded on the blockchain, or whether the token standard is ERC -721or not, as we currently only support ERC -721; •whether the listing of the NFT on the Coincheck NFT Marketplace is regulated by any applicable laws or regulations; •whether the NFT itself breaches any applicable laws and rights (including whether any work is being used without the permission of the copyright holder); •whether the operating company of the NFT has any particular issues (including whether it engages with or is considered to be an anti -socialforce); and •whether the operating company of the NFT is in compliance with applicable laws and regulations in connection with the NFT. However, there can be no assurance that procedures that we have implemented will be sufficient to comply with applicable laws and regulations, which remain uncertain and subject to rapid changes, or to identify all rights issues. For example, NFTs raise various intellectual property law considerations, including relating to ownership, copyrights, trademarks and rights of publicity. The creator of an NFT will often have, or purport to have, all rights to the content of the NFT and can determine what rights to assign to a buyer, such as the right to display, modify, or copy the content. Risks associated with purchasing or selling NFTs, include, among other things, the risk of purchasing counterfeit items or items alleged to be counterfeit, mislabeled items