Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 11

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 11
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 estimate may require approximately an additional several billion yen of net capital for Coincheck);

• established core business models outside of the trading of crypto assets;

• operations in jurisdictions with lower compliance costs and greater flexibility to explore new product

offerings;

• the ability to offer decentralized and noncustodial platforms; and

• substantially greater financial, technical, and other resources.

18

If we are unable to compete successfully, or if competing successfully requires us to take costly actions in

response to the actions of our competitors, our business, operating results, and financial condition could be adversely

affected.

We compete against a growing number of decentralized and noncustodial exchanges and platforms and our

business may be adversely affected if we fail to compete effectively against them.

We compete against an increasing number of decentralized and noncustodial exchanges and platforms. On

these exchanges or platforms, users can interact directly with a market-making smart contract or on-chain trading

mechanism to exchange one type of crypto asset for another without any centralized intermediary. We believe that

these exchanges and platforms are typically not as easy to use as our cryptocurrency platforms, and generally lack

the speed and liquidity of such kinds of well-operated platforms, like we believe ours to be, but various innovative

models and incentives have been designed to bridge the gap. Also, decentralized and noncustodial exchanges and

platforms are often thought to be less vulnerable to hacking since users do not need to transfer their assets to a third

party, and therefore have more exclusive control over their assets. Concerns about the security of assets following

incidents on crypto exchanges, such as the Chapter 11 bankruptcy filing of FTX and allegations of fraud and

mismanagement of funds against its founder and former CEO, may also increase user adoption of decentralized and

noncustodial platforms. Further, transaction fees on decentralized exchanges may be lower than ours. Decentralized

exchanges also do not require their users to fill out “know-your-customer,” or “ KYC” forms, offering an additional

layer of privacy to those who use them. Such decentralized exchanges and platforms also tend to have lower start-up

and entry costs as market entrants often remain unregulated and have minimal operating and regulatory costs, and

often have lower transactional fees for users. A significant number of decentralized exchanges or platforms that have

been developed and released, including on Ethereum, Avalanche, Tron, Polkadot and Solana, have experienced

significant growth and adoption. We expect interest in decentralized and noncust