OSL Group Limited announced that its Japanese subsidiary, OSL Investment (Japan) Limited, has signed a share purchase agreement to acquire an 81.38% stake in local crypto exchange CoinBest KK, according to a press release from November 4.
This acquisition represents a significant milestone for OSL, marking its strategic entry into the rapidly expanding Japanese crypto market, which now has over 5 million active accounts in 2023. CoinBest is one of 29 regulated crypto trading platforms in the Japan which are authorized to serve individuals and institutions. customers.
OSL aims to leverage its stake in CoinBest to create operational synergies that improve global trading liquidity across its member platforms and the broader network, which includes OSL Digital Securities. OSL Digital Securities is one of only three fully licensed crypto exchanges regulated by the Securities and Futures Commission (SFC) of Hong Kong.
OSL Group Chief Investment Officer Ivan Wong highlighted that the acquisition is a crucial step, allowing OSL to expand its regional reach and take advantage of Japan’s advanced market. Wong said:
“Leveraging the strong foundations we have built in Hong Kong, we aim to bring our expertise in over-the-counter, custody and trading services to new markets. Additionally, we look forward to gaining valuable insights and cutting-edge technologies from these markets to enhance our offerings and strengthen our competitive advantage at all levels.
Japan’s regulatory regime
Japan stands out for its strict crypto regulations, which have played a vital role in protecting customer funds, as seen in the case of FTX Japan during the bankruptcy of its parent company in 2022.
Under the Japanese regulatory framework, digital asset service providers must register with the Financial Services Agency (FSA) and adhere to strict anti-money laundering (AML) and cybersecurity protocols. These regulations ensure that providers verify customer identities and report suspicious activities to maintain compliance and security in the market.
In addition to maintaining strict regulations, Japan is actively strengthening its digital assets sector, with many companies exploring the potential of blockchain technology and stablecoins.
