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Crypto Lender Amber Group Shifts Focus Towards Institutional Business, May Shut Down Retail Operations

Published 17/04/2023, 16:34
© Reuters.  Crypto Lender Amber Group Shifts Focus Towards Institutional Business, May Shut Down Retail Operations
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Benzinga - Cryptocurrency lender Amber Group is considering options for its Japanese unit, which may include a possible sale, according to Managing Partner Annabelle Huang.

Huang revealed the firm's evaluation of the Japan operation is part of a strategic decision to shift its focus toward institutional rather than retail business.

She added that although Japan is a "very high-quality market, regulations are strict," and there is no announcement at the moment about a deal.

Amber Group, which acquired Japanese crypto exchange DeCurret Inc. in 2022, plans to apply for a virtual asset trading platform license in Hong Kong.

This move comes as the city aims to create a digital-asset hub, develop virtual-asset regulations that will encourage growth, and protect investors.

Huang said Amber is "preparing for our license application," and the regulatory scene in Hong Kong has been very bullish for them.

Also Read: Bitcoin Skyrocketed To $30,000 Earlier This Week — Here's What Experts Predict Could Happen Next

Regarding rival Singapore, Huang mentioned that the city-state has moved toward tightening crypto rules, particularly for retail investors, while Hong Kong is leading the way.

Amber's backers include Temasek Holdings Pte, which raised $300 million last year, mainly for customers who lost money on the platform's products due to FTX's (CRYPTO: FTT) implosion.

The company is also working on a regulated, open-ended mutual fund that would accept subscriptions in major tokens like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and some stablecoins.

Huang said the company's board of directors subsequently changed, including the exit of Dan Morehead, founder of Pantera Capital Management LP.

In 2022, Amber Group cut costs, made layoffs, shut down its retail customer operations and ended a sponsorship deal with Chelsea FC amid a slump in digital assets.

Read Next: Chia Network's Daring Public Move: Crypto Startup Defies Odds In Pursuit Of IPO

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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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