The holding company behind DeCurret, a Japanese digital asset exchange and exchange, is said to be planning to sell its crypto business to investment platform Amber Group.
According to a report in the Nikkei newspaper on Wednesday, DeCurret Holdings plans to sell its crypto business to Hong Kong-based Amber Group in February. While details of the acquisition were not clear, the news agency said the sale price would be in the millions of dollars.
DeCurret created a new business structure in December 2021, launching a holding company, DeCurret Holdings, and splitting its digital currency and business into separate subsidiaries. Under the proposed scheme, DeCurret Inc. The company’s cryptocurrency exchange business, while DeCurret DCP will handle the cryptocurrency business.
With the upcoming sale of its cryptocurrency, DeCurret is said to be planning to focus on digital currencies. Japanese regulators, including the country’s Financial Services Agency, or FSA, recognize digital currencies as different from cryptocurrencies.
First launched in 2019, DeCurret received regulatory approval from the FSA and the proposed cryptocurrency could be used as a payment method in Japan’s public transportation system. However, according to a Nikkei report, the cryptocurrency exchange has not been able to compete with major companies including BitFlyer and Coincheck, and “profits have dwindled.”
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If sold, it would be another example of a Chinese company – in this case Hong Kong – buying one of the few regulated cryptocurrency exchanges in Japan. In 2018, the Japanese subsidiary Huobi Global acquired a majority stake in BitTrade, one of the sixteen regulated exchanges in the country at that time. At the end of 2021, there were 30 FSA approved cryptocurrency exchange companies operating in Japan.
Hong Kong-based Amber Group reached a valuation of $1 billion in June 2021 after a $100 million funding round. Since then, the crypto financial services company has supported projects including the 1-inch decentralized exchange aggregator network and launched its own non-fungible token studio called Creator Finance.