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Crypto lender Amber Group could shift to Hong Kong for this reason, details inside
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– Crypto lender Amber Group is reportedly considering selling its Japanese unit and shifting to Hong Kong.
– The firm’s Managing Partner revealed that Hong Kong’s friendly crypto policies were better suited for its business.
Singapore-based digital asset firm Amber Group is reportedly considering a plan to ditch its Japanese business in favor of a shift to Hong Kong. The crypto lender is mulling a potential sale of its unit in Japan and applying for a license in Hong Kong. The island city’s friendly approach is likely a motivating factor in this consideration.
Amber Group to ditch Japan in favor of Hong Kong?
A 14 April report by Bloomberg said that Amber Group’s reassessment of its Japanese operations is part of a strategic decision to shift its focus from retail facing business to institutional operations.
Japanese crypto exchange DeCurrent, which was acquired by Amber in 2022, is at the center of the firm’s divestment. While the firm is considering several options, the sale of the exchange is on the table.
In an interview with Blomberg, Amber Group’s Managing Partner Annabelle Huang clarified that Japan was a high-quality market. However, the nation’s current stance on crypto made it suboptimal for the crypto lender to continue operating in the country. The strict regulations in Japan following a year of bankruptcies and scandal, has made the firm reconsider its business there.
Additionally, Huang said that:
“The regulatory scene in Hong Kong has been very bullish for us. Hong Kong is sort of leading the way at the moment, but I think Singapore is not exactly closing the door as well.”
Huang further stated that her firm intends to apply for a virtual asset trading platform (VATP) license in Hong Kong following the potential exit from Japan. The island city has a friendly crypto stance and is developing a regulatory regime aimed at fostering its crypto ecosystem. This makes it an attractive destination for entities operating in crypto space.
