Amber Group Shifts Focus: Selling Japanese Unit to Embrace Institutional Crypto Business

The Shift in Strategy

Amber Group, the Singapore-based crypto lending powerhouse, has decided it’s time to reassess its strategy. In a recent announcement reported by Bloomberg, it seems Amber is considering selling off its Japanese operation to concentrate more on the high-flying world of institutional business, rather than continuing to cater primarily to retail clients. Spoiler alert: No formal decision has been made yet, but the wheels are turning.

Japan’s Regulatory Maze

Why the sudden shift? Managing partner Annabelle Huang explained that while Japan represents a “very high quality market,” the strict regulatory landscape throws a bit of a wrench into the works. Amber is not just dipping its toes into the Japanese waters; it’s taking a serious look at either scaling back its presence or completely letting go of its operations there. Too much red tape, not enough greenbacks, if you catch my drift.

The Hong Kong Opportunity

On the brighter side, Amber sees a golden opportunity in Hong Kong as it plans to apply for a virtual asset trading platform license. Following Hong Kong’s enthusiastic attempt to become a digital-asset hotspot, the regulatory environment there feels much more welcoming. Huang candidly noted, “The regulatory scene in Hong Kong has been very bullish for the firm.” Sounds like the crypto streets of Hong Kong are paved with gold!

Regulatory Comparison: Hong Kong vs Singapore

With Hong Kong changing the game, the question begs: What’s up with Singapore? Huang pointed out that while Hong Kong is leading the charge, Singapore isn’t shutting the door entirely on innovation. Instead, it seems like Singapore is tightening its grip on retail crypto operations while Hong Kong is ready to roll out the welcome mat for institutional ventures. It’s a classic case of different strokes for different folks in the fast-paced world of crypto regulation.

Aftershock of FTX

The backdrop to all this is the massive earthquake that was the collapse of FTX, an event that sent shockwaves through the crypto universe. Last December, Amber managed to secure a hefty $300 million in a Series C funding round led by Fenbushi Capital US, even pausing their previous Series B funding plans. Before the FTX fallout, Amber was looking at a $100 million raise at a solid $3 billion valuation. However, they had to lay off more than 40% of their team—just a minor detail that shows the harsh reality of the collapsing crypto landscape.