Amber Group, a well-known provider of digital assets located in Singapore, is thinking about abandoning its operations in Japan in favor of Hong Kong. The aforementioned cryptocurrency lender was discovered considering selling their Japan business as well as submitting an application for a license in Hong Kong. According to experts, this decision is likely motivated by the island city’s welcoming attitude.
Amber Group Considers Leaving Japan
According to a recent Bloomberg story, Amber Group is currently reevaluating its Japanese operations as part of a strategic decision to change its focus from retail-facing business to institutional operations. DeCurret, a Japanese cryptocurrency exchange platform that Amber Group had acquired last year, was in the middle of the company’s disposal.
Although there are many possibilities available, selling the specified exchange is also an option. Managing Partner Annabelle Huang of the Amber Group emphasized that Japan was a high-quality market. Despite this, she added that the country’s existing attitude toward cryptocurrencies made it undesirable for the crypto lender to maintain operations there.
Huang continued by saying that Hong Kong’s regulatory environment has been really positive for them and that she believes the nation is currently in the lead. She continued by pointing out that Singapore isn’t exactly shutting the door either, despite this.
Huang has made known their intentions to apply for a virtual asset trading platform license in Hong Kong in light of its impending departure from Japan. According to reports, the island city has a pro-crypto posture and is establishing a legal framework geared at promoting its crypto economy, which makes it a desirable location for businesses operating in the field.
Amber Group’s Acquisition of DeCurret
DeCurret was purchased by Amber Group last year, as was previously announced. The aforementioned transaction was its means of accessing the Japanese market. Additionally, the aforementioned transaction opened the door for a synergy between the two platforms.
Which essentially meant that DeCurret’s cryptocurrency exchange offerings were integrated with Amber’s user-focused digital asset investing tools. The Japanese-based exchange also boasts a broad in-market reach that Amber can take advantage of to maximize the market potential for digital assets in that nation.
Michael Wu, the global chief executive officer of Amber Group at the time, asserted that Japan has a “tremendous strategic value” as a big crypto finance market. He has also spoken about how pleased they are to be incorporating DeCurret and WhaleFin as they increase their footprint in the nation.
In light of this, Amber’s entry into Japan in 2022 occurred as the East Asian nation loosened several crypto regulations to encourage growth and development. On the other side, prominent figures in the cryptocurrency sector like Coinbase and Kraken have retreated despite the country’s increased embrace of digital assets. This situation might also play a role in Amber Group’s choice.