Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 69

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 69
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2025 (versus, for example, 17% of the United States population as of April 2025), according to data

from the JVCEA and Morning Consult. We believe this suggests the potential for further development of the

Japanese crypto asset market. We believe that the Japanese public is highly engaged and willing to participate in the

crypto asset revolution and encouraged by the country’s thoughtful crypto regulation model, which is designed

around protecting the consumer. While our trading volume, together with the trading volume of others in the

industry, has seen declines following the significant decline in cryptocurrency prices after their June 2021 peak, and

the negative publicity, lawsuits and bankruptcies concerning some large industry players beginning at about the time

of the FTX scandal and bankruptcy in 2022, we have continued to see growth in our number of verified accounts

through March 31, 2025. We define verified accounts as accounts that have been opened after the account has been

approved following completion of all application procedures (including “know your customer” or “ KYC”), after

subtracting therefrom the total number of closed accounts.

Japan has a well-developed regulatory environment for safe and secure trading.

While the legal status of crypto assets is unclear in many places around the world, Japan is one of the first

countries to define crypto assets in law and to introduce regulations for crypto asset exchanges. In April 2017, the

revised Payment Services Act and the revised Act on Prevention of Transfer of Criminal Proceeds, which introduced

a definition of crypto assets (originally called virtual currency under that law) and a regulatory framework for crypto

asset exchanges, came into effect, and cryptocurrency exchange businesses became subject to registration by the

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JFSA. As a result, anti-money laundering (AML) and counter-terrorist financing (CFT) regulations began to be

applied to cryptocurrency exchanges. Additionally, in order to protect users and enforce proper and reliable business

practices, the JFSA’s administrative guidelines have required cryptocurrency exchange companies to establish a

system for examining how cryptocurrencies are handled and a system for appropriately verifying risks. In

March 2018, the JVCEA was established and became a certified self-regulatory organization in October of the same

year. The JVCEA formulates and publishes self-regulatory guidelines and rules in compliance with various JFSA

guidelines to protect users and strengthen the AML/CFT system. We believe that Japan’s robust regulatory

environment