Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 32

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 32
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 or do not adequately remediate certain findings, regulators could

take a variety of actions that could impair our ability to conduct our business, including delaying, denying,

withdrawing, or conditioning approval of certain products and services. In the case of non-compliance or alleged

non-compliance, we could be subject to investigations and proceedings that may result in substantial penalties or

civil lawsuits, including by customers. Any of these outcomes would adversely affect our reputation and brand and

business, operating results, and financial condition. Some of these outcomes could adversely affect our ability to

conduct our business.

30

We may suffer losses due to abrupt and erratic market movements.

The crypto asset market has been characterized by significant volatility and unexpected price movements.

Certain crypto assets may become more volatile and less liquid in a very short period of time, resulting in market

prices being subject to erratic and abrupt market movement, which could harm our business. For instance, abrupt

changes in volatility or market movement can lead to extreme pressures on our cryptocurrency exchanges and

infrastructure that can lead to inadvertent suspension of services across parts of the platform or the entire platform.

In addition, we hold certain crypto assets separately from the crypto assets of our customers in order to ensure

liquidity for our customers. We utilize the value-at-risk method to help manage the market risk of such crypto assets

held and we monitor the supply volume and transaction value of each crypto asset that we offer on our Marketplace

platform for liquidity risk on a daily basis relative to our capital. However, as crypto assets are usually significantly

more volatile than other financial assets, these periods of volatility and unexpected price fluctuations may affect our

financial position and business performance if our risk management and liquidity risk procedures are not effective.

One way in which we limit our exposure to market risk is by borrowing crypto assets from our customers under our

Coincheck Lending program. Under the terms of the borrowing agreements, we return the subject crypto assets in

kind at the end of the specified borrowing period. If borrowing from our customers becomes limited or unavailable,

we might need to purchase and hold crypto assets in order to use them to facilitate the operations of our Marketplace

platform, increasing our exposure to price fluctuations to the extent of the crypto assets held.

Negative publicity associated with crypto asset platforms, including instances of potential fraud, the bankruptcy

of industry participants and the violation of applicable legal and regulatory requirements, may cause existing and

potential customers to lose confidence in crypto asset platforms.

Crypto asset platforms are relatively new. Many of our competitors outside