Crypto lender Amber mulls potential sale of Japan subsidiary
AMBER Group, a crypto lender, is weighing options for its Japan unit, including a possible sale, and plans to apply for a Hong Kong licence following the city’s pivot towards becoming a digital-asset hub.
The evaluation of the Japan operation is part of a strategic decision to focus more on institutional rather than retail business, Amber’s managing partner Annabelle Huang said in a Bloomberg Television interview on Friday (Apr 14).
Japan is a “very high-quality market, but regulations are strict”, she said, adding that the group does not yet have an announcement about a deal.
Singapore-based Amber acquired Japanese crypto exchange DeCurret in 2022. While Japan has eased some digital-asset rules, other companies such as Coinbase Global and Kraken have already pulled back from the East Asian nation.
Amber, whose backers include Temasek Holdings, intends to apply for a virtual asset trading platform licence in Hong Kong, given the city’s push to open up to crypto companies.
“The regulatory scene in Hong Kong has been very bullish for us,” Huang said, adding that Amber is “preparing for our licence application”.
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Hong Kong and Singapore
Hong Kong is aiming to develop virtual-asset regulations that will encourage growth and protect investors. The city is planning to learn lessons from global bankruptcies such as the FTX collapse, while taking advantage of a rebound in crypto markets from a US$2 trillion rout.
Rival Singapore has moved towards tightening crypto rules, particularly for retail investors. “Hong Kong is sort of leading the way at the moment, but I think Singapore is not exactly closing the door as well,” Huang said.
Amber last year said it had raised US$300 million, mainly for customers who lost money on the platform’s products due to FTX’s implosion. The Series C round was led by venture capital company Fenbushi Capital.
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Board changes
The lender’s board of directors subsequently changed, Huang said. This included the exit of Dan Morehead, founder of Pantera Capital Management.
She added that Amber is working on a regulated, open-ended mutual fund that would accept subscriptions in major tokens including Bitcoin and Ether, as well as some stablecoins.
In 2022, the company cut costs, conducted layoffs, shut down its retail customer operations, and ended a sponsorship deal with Chelsea Football Club amid a slump in digital assets. BLOOMBERG
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