Japanese exchange Coincheck is poised to become one of the two publicly listed exchanges in the United States, joining Coinbase, as announced in a statement on May 8.

The crypto trading platform anticipates finalizing its listing on the Nasdaq through a partnership with special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV (THCP) by the second or third quarter of this year.

Upon completion of the merger, Coincheck Group BV will be renamed Coincheck Group NV and listed on the Nasdaq stock exchange under the ticker symbol CNCK. The company submitted the confidential registration statement, Form F-4, to the US Securities and Exchange Commission (SEC) on May 7.

By utilizing a SPAC, Coincheck will bypass the initial public offering process like Coinbase. SPACs are pre-existing public entities that invest in or merge with private companies.

However, Coincheck's decision to go public via a SPAC may raise concerns among investors due to the underperformance of many SPACs in the public market. In 2023, for instance, at least 21 firms that went public through SPAC mergers filed for bankruptcy, leading to substantial investor losses totaling $46 billion.

Despite these potential risks, Coincheck is a significant player in the Japanese crypto exchange landscape, boasting 1.98 million verified users since its inception in 2014. It has built a strong reputation over nearly a decade of operation.

Coincheck's move to go public comes at a time when the SEC has heightened its regulatory scrutiny of the crypto industry. In recent weeks, the financial regulator has issued Wells Notices to crypto firms like Consensys, decentralized exchange Uniswap, and Robinhood's crypto arm, alleging violations of local securities laws.

In a recent interview, SEC Chair Gary Gensler reiterated his stance that most cryptocurrencies are securities tokens, arguing that these assets lack the necessary disclosures to protect investors.