Japanese Exchange Coincheck Joins Coinbase in US Public Listing

Coincheck, a prominent Japanese cryptocurrency exchange, has announced its plans to go public on the Nasdaq through a partnership with a special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV (THCP). This move will make Coincheck one of the two publicly listed exchanges in the United States, alongside Coinbase. The merger is expected to be completed by the second or third quarter of this year, rebranding Coincheck Group BV to Coincheck Group NV, with the ticker symbol CNCK.

While the decision to use a SPAC for the public listing bypasses the traditional initial public offering process, it raises concerns among investors due to the performance of most SPACs in the public market. In 2023, several firms that went public through SPAC mergers ended up bankrupt, leading to significant investor losses totaling $46 billion. Given this track record, investors might hesitate to support Coincheck’s move to go public via SPAC.

Coincheck has established itself as one of the largest cryptocurrency exchanges in Japan, boasting almost 2 million verified users and operating since 2014. With nearly a decade of experience, Coincheck has built a strong reputation in the industry. However, the decision to go public comes at a time when regulatory scrutiny in the crypto sector is intensifying.

The Securities and Exchange Commission (SEC) has been tightening its oversight on cryptocurrency firms, issuing Wells Notices to companies like Consensys, Uniswap, and Robinhood’s crypto division for alleged violations of securities laws. SEC Chair Gary Gensler has reiterated that most cryptocurrencies are considered securities tokens and lack proper investor protection disclosures. This increased regulatory pressure could potentially impact Coincheck’s public listing and operations in the US market.

While Coincheck’s move to join Coinbase in the US public listing market is a significant step for the exchange, the decision to go public via SPAC raises concerns among investors. With the ongoing regulatory scrutiny surrounding the cryptocurrency industry, Coincheck will need to navigate carefully to ensure compliance and maintain investor confidence in the public market.