Amber Group, a crypto lending platform based in Singapore, is thinking about selling its Japan unit as part of a plan to focus more on institutional than retail customers, managing partner Annabelle Huang said in a Bloomberg Television interview Friday.
Amber Group bought Japanese crypto exchange DeCurret last year for an undisclosed amount. DeCurret is one of the 30 crypto exchanges registered with the Japan Financial Services Agency (FSA), the country’s regulator. DeCurret has 35 shareholders, including major Japanese financial institutions and corporations.
However, Huang said that Japan is a “high-quality market … [but] regulations are strict.” She said that Amber Group wants to concentrate on its core business of providing crypto lending and trading services to institutional clients.
Amber Group bought DeCurret in February 2022. Amber Group said the acquisition signified its entry into Japan and that it would use DeCurret’s crypto exchange platform and broad in-market reach to unlock Japan’s crypto market potential.
DeCurret, a crypto asset exchange service provider formed in 2018, received an FSA license in 2018, (CAESP). DeCurret pioneered crypto asset electronic money charge services and made cryptocurrency more accessible to users.
Amber Group’s decision to sell its Japan unit may reflect the changing regulatory landscape for crypto firms in Japan.
Crypto exchanges must now follow stronger FSA anti-money laundering, client protection, and risk management requirements. The FSA has also warned about unregistered overseas crypto platforms that serve Japanese residents.
On the other hand, Japan has also shown signs of creating a more friendly regulatory environment for crypto firms, with the ruling Liberal Democratic Party publishing a white paper to boost the industry in the country.
The white paper proposes changes to tax regulation and improvements to accounting standards for crypto assets.
Huang also said that Amber Group is planning to apply for a virtual asset trading platform (VATP) license in Hong Kong, following the introduction of a new licensing regime in the city. She said that Hong Kong “has been very bullish” on crypto regulation.
She added that Singapore, where Amber Group is based, is also “not exactly closing the door as well.”
Amber Group has not responded to CoinDesk’s request for further comment at this time.