Amber Group considers sale of its Japanese subsidiary

Amber Group is exploring the possibility of selling its Japanese unit. This was stated in an interview with Bloomberg by Amber Group managing partner Annabelle Huang.

Crypto lender Amber Group is weighing options for its Japan unit, including a possible sale, and plans to apply for a Hong Kong digital-asset license https://t.co/fK7KzQkkkU

— Bloomberg (@business) April 14, 2023

According to her, the decision could be taken as part of a strategic plan to shift the business from retail to institutional. Huang noted the high quality of the Japanese market and the presence of stringent regulations.

In February 2022, the platform acquired the local bitcoin exchange DeCurret. The latter held a Crypto-Asset Exchange Service Provider license from the Financial Services Agency of the country.

Amber Group also plans to apply for a license in Hong Kong. Previously, Huobi exchange took this step, announced OKX.

“The regulatory situation in Hong Kong is very optimistic for us,” Huang said.

In October 2022, the Hong Kong Financial Services and Treasury Bureau published a statement on easing of restrictions on cryptocurrencies and its willingness to work with virtual-asset service providers.

In January 2023, Hong Kong’s Financial Secretary Paul Chan said that the jurisdiction is ready to welcome cryptocurrency companies from around the world. The official noted that authorities had recently completed work on a licensing regime for the industry.

In February, Chan said that Hong Kong will earmark $6.4 million in the annual budget to accelerate the development of the Web3 ecosystem. The funds will also go to support the G-Rocket accelerator, which began operating earlier this year.

In December 2022, Amber Group raised $300 million in a Series C round, led by Fenbushi Capital US.

Prior to that, the company canceled annual bonuses for staff and cut executive salaries due to slow business growth and industry uncertainty.