Company: CNCKW
Filing Date: 2025-01-28
Form Type: F-1
Source: 0001213900-25-007203
Chunk: 164

Company: Coincheck Group N.V.
Filing Date: 2025-01-28
Form: F-1
Chunk 164
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 have recovered since November 2022 following the Chapter 11 bankruptcy filing of FTX and allegations of fraud and mismanagement of funds in November 2022. Although the price of Bitcoin increased to approximately ¥5,960,000 as of December 31, 2023 and has been on a general trend upwards since, with prices reaching record highs at approximately ¥10,800,000 as of March 31, 2024 and remaining at relatively stable levels since then despite dropping slightly to approximately ¥9,327,000 as of September 30, 2024, the prices of many crypto assets have continued to remain highly volatile. Despite the volatility in prices, we believe the crypto asset markets continue to hold potential for future growth. There has been a structural shift in the market brought about by the spread of decentralized systems. As a result of this shift, we expect the legal and regulatory environment surrounding crypto assets to develop further in order to regulate intermediaries to ensure market integrity and user protection. It is not clear at this time what alternative legal and/or regulatory approach will be adopted, however it may result in direct regulation of end users. Alternatively, hybrid regulatory approaches may be adopted, where end users will be subject to direct regulation unless they engage in the crypto asset markets through regulated service providers which will themselves be subject to direct regulation. 109 The Japanese cryptocurrency market is a large and underpenetrated market, representing a compelling opportunity in East Asia. Considerable transaction volume of cryptocurrencies on exchanges in Japan. Japan’s domestic cryptocurrency market has had periods of strong transaction volume despite recent periods of volatility. In September 2024, the cash trading volume on domestic cryptocurrency exchanges, including our cryptocurrency exchanges, was approximately ¥0.9 trillion, after reaching much higher volumes during 2021. The below graph illustrates recent trends in trading volume: Source:Created by us based on public information made available by the JVCEA. Potential for growth in the number of registered accounts According to the Japan Securities Dealers Association, the number of brokerage accounts held by individuals in Japan was approximately 37 million as of September 2024. However, according to the JVCEA, there were only approximately 11million accounts engaged in trading of crypto assets, including both physical transactions and margin trading, as of September 30, 2024. We believe this shows real potential for growth in investment and trading of crypto assets by Japanese individuals. While Japan is the fourth largest global economy, only 7.7% of the Japanese population owns crypto assets as of February