Company: CNCKW
Filing Date: 2025-03-27
Form Type: F-1/A
Source: 0001013762-25-003470
Chunk: 183

Company: Coincheck Group N.V.
Filing Date: 2025-03-27
Form: F-1/A
Chunk 183
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 that leads to credit, legal or reputational concerns with cover counterparties for a particular crypto asset, we would first attempt to use our Exchange platform, or other OTC counterparties that are capable of netting settlement, to execute cover transactions. If we determine no such alternatives are feasible for a particular crypto asset, we would then temporarily suspend trading of the crypto asset. Furthermore, in light of the market trends during the fiscal year ended March 31, 2023, we added a function to our internal system in the form of a Coincheck -initiatedimmediate withdrawal process on our administrator screen in December 2022. This Coincheck -initiatedimmediate withdrawal process allows us at our discretion to initiate the withdrawal of the balance of our crypto assets deposited with Binance to further ensure that crypto assets deposited with Binance are safeguarded. Although as of December31, 2024 Binance has a daily withdrawal limit of $160 million USD (approximately ¥25.5 billion based on exchange rates as of December 31, 2024), the value of our crypto assets held on deposit with Binance as of December31, 2024 is ¥300million, far below this withdrawal limit, and under our current internal practices, total assets held on deposit with Binance cannot exceed ¥300 million (approximately $1.88 million based on exchange rates as of December 31, 2024). We are not subject to any other restrictions with respect to this withdrawal process. However, it is possible that Binance could fail to, or be restricted from, fulfilling our withdrawal requests. There is not a similar immediate withdrawal process in place for other cover counterparties because we believe that the amount of crypto assets deposited with other cover counterparties, and after taking other factors including any pending legal actions against those cover counterparties into consideration, do not warrant such a system at this time. Competition We operate in a highly regulated and competitive market in Japan. Markets relating to crypto assets have been growing quickly and, given the nascency of the crypto asset industry and the early -stageadoption of crypto assets in Japan, we expect the competitive landscape to be rapidly evolving. As of December 31, 2024, there were 29 crypto asset exchange service providers registered with the JFSA in Japan. Our competitors include independent providers in Japan, including bitFlyer, GMO Coin, Bitbank and Mercoin, as well as providers affiliated with foreign 121 exchanges, including Huobi Japan. In addition, Binance announced that it