Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 21

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 21
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exchange service providers with the JFSA under the Payment Services Act. Although regulators outside of Japan,

including those in the United States, have taken the position that certain crypto assets fall within the definition of a

“security” under their country’s securities laws, these crypto assets are not currently considered a “security” in

Japan. There can be no assurance that the laws and regulations in Japan will not change in the future, especially if

laws or regulatory bodies in Japan later decide to adopt “is it a security” analyses similar to those used in other

jurisdictions, such as the U. S. The classification of a crypto asset as a security under applicable law has wide-

ranging implications for the regulatory obligations that flow from the offer, sale, trading, and clearing of such assets.

As there can be no assurance that such regulation will not change or that future crypto assets will have differing

treatments, we could be subject to legal or regulatory action in the event that a regulatory authority, or a Japanese

court, were to determine that a supported crypto asset currently offered, sold, or traded on our cryptocurrency

exchanges is a “security” under applicable laws or new rules or guidance. Successful completion of the initial

screening process of a crypto asset and determination of no objection by the JVCEA is not binding on regulatory

authorities or courts in Japan in the event of a subsequent legal proceeding. If the JFSA or a court were to determine

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that a supported crypto asset currently offered, sold, or traded on our cryptocurrency exchanges is a security, we

would not be able to offer such crypto asset for trading until we are able to do so in a compliant manner. Such an

action could result in penalties, fines and reputational harm while customers that traded such supported crypto assets

on our cryptocurrency exchanges and subsequently suffered trading losses could also seek to rescind a transaction

that we facilitated on the basis that it was conducted in violation of applicable law, which could subject us to

significant liability. Further, if a crypto asset supported on our cryptocurrency platforms is deemed to be a security

under the laws of foreign jurisdictions, including the United States (as was the case with XRP which, depending on

the context, some courts categorize as a security and others do not), it may have adverse consequences for the

market for such supported crypto asset, including an adverse impact on its liquidity. Networks on which such

supported crypto assets are utilized may also be subject to regulation as