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Coincheck to Become the Second Publicly Listed Crypto Exchange in the US
Japanese cryptocurrency exchange Coincheck is on track to become one of just two publicly listed exchanges in the United States, alongside Coinbase. This move is part of a strategic decision outlined in a statement released on May 8th. Coincheck plans to finalize its listing on the Nasdaq through a collaboration with Thunder Bridge Capital Partners IV (THCP), a special purpose acquisition company (SPAC), by the second or third quarter of this year.
Upon completion of the merger, Coincheck Group BV will undergo a name change to Coincheck Group NV and will be traded on the Nasdaq under the ticker symbol CNCK. The company took the necessary steps by submitting a confidential registration statement, Form F-4, to the US Securities and Exchange Commission (SEC) on May 7th.
Unlike Coinbase, which went public through a traditional initial public offering (IPO) process, Coincheck has opted for the SPAC route. SPACs are already publicly traded entities that simply seek to merge with or invest in private companies, allowing for a more streamlined path to going public.
However, the decision to pursue a SPAC listing may raise concerns among investors, given the less than stellar performance of many SPACs in the public markets. In 2023, numerous companies that went public via SPAC transactions ended up filing for bankruptcy. Additionally, the market capitalization of such companies took a significant hit, resulting in billions of dollars in losses for investors.
Coincheck’s Background and Reputation
As one of the largest cryptocurrency exchanges in Japan, Coincheck boasts a user base of 1.98 million verified individuals. Founded in 2014, the exchange has established a strong reputation over nearly a decade of operation.
Challenges Posed by US Regulatory Landscape
Coincheck’s decision to pursue a public listing comes at a time when the SEC is intensifying its oversight of the cryptocurrency industry. In recent weeks, the regulatory body has issued Wells Notices to several crypto firms, including Consensys, Uniswap, and Robinhood’s crypto division, citing potential violations of securities laws.
SEC Chair Gary Gensler has reiterated the view that most cryptocurrencies should be classified as securities tokens and argued that these assets lack the necessary investor protections through proper disclosures. This increased regulatory scrutiny poses a challenge for Coincheck and other cryptocurrency exchanges looking to expand their presence in the US market.
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