Evaluating Options for Amber Group’s Japanese Subsidiary, Potential Sale Considered

According to reports, Amber Group, a cryptocurrency lending institution, is weighing the options of its Japanese subsidiary, including a possible sale, and plans to apply for a Hong Kong digital asset license. Amber’s executive partner, Annabelle Huang, stated that evaluating the Japanese business is part of its strategic decision to focus more on institutional business rather than retail business. The regulatory environment in Hong Kong is very favorable for us, Amber

Amber Group is considering selling its Japanese subsidiary and planning to apply for a Hong Kong digital asset license

The cryptocurrency lending institution Amber Group is reportedly evaluating the options for its Japanese subsidiary, including a possible sale, as it plans to apply for a Hong Kong digital asset license. According to Amber’s executive partner Annabelle Huang, the decision to assess the Japanese business is part of Amber’s approach to shift more towards institutional business rather than retail business. Huang further emphasized that the regulatory environment in Hong Kong is highly supportive of their company’s direction.

Current Scenario of Amber Group in Japan

Amber Group’s Japanese arm is a significant player in the Japanese cryptocurrency market. However, amid the company’s strategic shift towards institutional business, Amber is evaluating its options and considering the potential sale of its wholly-owned subsidiary in Japan. In recent years, foreign exchange of cryptocurrencies has become more prevalent in Japan, but the regulatory environment in Hong Kong has also become more supportive.

Amber Group’s Strategic Shift Towards Institutional Business

Amber Group’s move to focus on institutional business instead of retail reflects the trends in the cryptocurrency market. While retail customers remain a significant source of revenue for cryptocurrency exchanges, Amber is looking to shift its focus towards institutional customers who offer greater stability and growth opportunities.
According to Huang, “more institutional investors are entering the market every day, and we see tremendous growth potential in providing services that cater to their needs.”

Hong Kong’s Favorable Regulatory Environment

Hong Kong is considered to have one of the most favorable regulatory environments for digital asset businesses. In 2019, the Hong Kong Securities and Futures Commission (SFC) introduced a new regulatory framework that licenses digital asset businesses. Under this framework, digital asset businesses can be regulated and licensed by the SFC as virtual asset portfolio managers, fund distributors, or crypto exchanges.
This regulatory framework provides a comprehensive and transparent way of regulating cryptocurrency businesses, and Amber Group sees it as a significant advantage in its growth strategy.

Amber Group’s Plans for Digital Asset License in Hong Kong

According to Huang, Amber Group is planning to apply for a digital asset license in Hong Kong. The license will allow Amber to offer a wider range of services to its customers, including custody, trading, and lending of cryptocurrencies. This move is part of Amber’s strategy to offer more comprehensive services to institutional clients who have a more extensive range of digital asset needs.

Conclusion

Amber Group is weighing its options for its Japanese subsidiary, including a possible sale, as it embarks on a strategic shift towards institutional business. The regulatory environment in Hong Kong is highly favorable for digital asset businesses, and Amber Group is planning to apply for a digital asset license in Hong Kong.
With the license, Amber Group can offer a wider range of services to its customers, including custody, trading, and lending of cryptocurrencies. This move is part of Amber’s strategy to offer more comprehensive services to institutional clients and cater to their digital asset needs.

FAQs

Q1. What is Amber Group, and what does it do?
Amber Group is a cryptocurrency lending institution that offers a range of digital asset services to its clients, including trading, lending, and custody.
Q2. Why is Amber Group weighing its options for its Japanese subsidiary?
Amber Group is shifting its focus towards institutional customers and evaluating the options for its Japanese subsidiary as part of its strategic shift.
Q3. What is the regulatory environment for digital asset businesses in Hong Kong?
Hong Kong has a highly favorable regulatory environment for digital asset businesses, with a comprehensive and transparent regulatory framework in place.