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

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 30
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 loyalty of our customers and result in a decrease in our total revenue,

which could adversely affect our business, operating results, and financial condition.

Our product and service offerings may be exploited to facilitate illegal activity such as fraud, money laundering,

gambling, tax evasion, and scams. If any of our customers use our platforms or offerings to further such illegal

activities, our business could be adversely affected.

Our product and service offerings through our crypto asset platforms may be exploited to facilitate illegal

activity including fraud, money laundering, gambling, tax evasion and scams. We may be specifically targeted by

individuals seeking to conduct fraudulent transfers, and it may be difficult or impossible for us to detect and avoid

such transactions in several circumstances. The use of our platforms for illegal or improper purposes could subject

us to claims, lawsuits, and government and regulatory investigations, prosecutions, enforcement actions, inquiries,

or requests that could result in liability and reputational harm for us. In the event that a customer is found

responsible for intentionally or inadvertently violating the laws in Japan or elsewhere, we may be subject to

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governmental inquiries, enforcement actions, prosecuted, or otherwise held secondarily liable for aiding or

facilitating such activities. As a licensed crypto asset exchange service provider in Japan, we are required to

implement KYC and other preventative measures mandated under Japan’s Act on Prevention of Transfer of

Criminal Proceeds and monitored by the JFSA. We have in the past reported instances of non-compliance, and any

future failure to maintain sufficient preventative measures could result in regulatory consequences and damage to

our reputation. Changes in law have also increased the penalties for certain illegal activities, and government

authorities may consider increased or additional penalties from time to time. Any threatened or resulting claims

could result in reputational harm, and any resulting liabilities, loss of transaction volume, or increased costs could

harm our business.

Crypto assets generally have characteristics, such as the speed with which digital currency transactions can be

conducted, the ability to conduct transactions without the involvement of regulated intermediaries, the ability to

engage in transactions across multiple jurisdictions, the irreversible nature of certain crypto asset transactions, and

encryption technology that anonymizes these transactions, that make crypto assets (as opposed to fiat currencies)

more susceptible to use in illegal activity. Various regulatory authorities and law enforcement agencies have taken

and continue to take legal action against persons and entities alleged to be engaged in fraudulent schemes or other

illicit activity involving crypto assets.

While we believe