Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 16

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 16
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 financial strategy leading to a reduction in its value) for

these publicly traded companies. If Bitcoin’s price falls sharply, these leveraged companies might find themselves

overextended, unable to raise funds or cover liabilities. This could lead to significant financial impacts, potentially

triggering forced asset sales and affecting market dynamics amid economic downturn worries. If the capital

supporting these strategies dries up as loans mature, lenders could call in margins and force sales, further depressing

Bitcoin prices. The risk of cascading liquidations and the unwinding of BTC positions could have profound effects

on market stability, potentially resulting in broader economic repercussions. Significant decline in the price of

Bitcoin and other crypto assets that may result could negatively affect our trading volume and business.

21

We are subject to extensive regulation in Japan and any adverse changes to, or our failure to comply with, any

laws and regulations could adversely affect our brand, reputation, product and service offerings, business,

operating results, and financial condition.

Our business is subject to ongoing examinations, oversight, and reviews, by Japanese regulators and self-

regulatory organizations, including, but not limited to, the JFSA and the JVCEA. We received our license as a

crypto asset exchange service provider from the JFSA in January 2019. We are required to periodically submit

business and audit reports and are subject to examinations by these regulatory authorities. As a result of findings

from these audits and examinations, regulators have and may in the future require us to take certain actions,

including amending, updating, or revising our compliance measures from time to time, limiting the kinds of

customers to whom we provide services, changing, terminating, or delaying our licenses that relate to or cover

existing or introduction of new product and services, requiring us to have further external or internal audits, or

requiring us to submit or be subject to further regulatory scrutiny, including investigations and inquiries. We have

received, and may in the future receive, examination reports citing violations of rules and regulations, inadequacies

in existing compliance programs, and requiring us to enhance certain practices with respect to our compliance

program, including due diligence, monitoring, training, reporting, and recordkeeping. Implementing appropriate

measures to properly remediate these examination findings may require us to incur significant costs, and if we fail to

properly remediate any of these examination findings we could face civil litigation, significant fines, damage

awards, forced removal of certain employees (including members of