- OSL has achieved a key milestone in its global expansion efforts.
- The company acquired a regulated crypto exchange in Japan.
- The acquisition will enable OSL to bolster its digital asset offerings.
OSL Group Limited announced Monday that its wholly-owned Japanese subsidiary, OSL Investment (Japan) Limited, had signed a share purchase agreement to acquire a significant stake in local crypto exchange CoinBest K.K.
Founded in 2017, CoinBest is among the 29 crypto trading platforms licensed by Japan’s Financial Services Agency (FSA) to provide digital asset services to retail and institutional clients. OSL said the exchange’s acquisition marked a key milestone in its globalization roadmap.
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OSL Acquires Controlling Stake in CoinBest
According to a press release dated November 4, the share purchase agreement will see OSL acquire an 81.38% stake in CoinBest as part of its official inroads into the burgeoning Japanese crypto market, which had 5.16 million active digital asset accounts in 2023.
OSL’s plan post-acquisition includes creating “business synergies” between CoinBest and its other member platforms, including OSL Digital Securities, one of the three fully licensed crypto exchanges by Hong Kong’s Securities and Futures Commission (SFC).
OSL said it would support the exchanges under its umbrella through product and service innovation, enhanced global trading liquidity, and sharing resources and best practices to boost its overall digital asset offerings.
“Acquiring CoinBest is a pivotal milestone for OSL. This move signifies our entry into the Japanese market, heralding a new era of global growth. Leveraging the robust foundation we’ve built in Hong Kong, we aim to bring our expertise in OTC, custody and trading services to new markets,” OSL Group’s CIO Ivan Wong stated.
The development underscored Japan’s growing influence as a crypto hub, thanks to its robust digital asset regulatory framework.
Japan’s Crypto Regulation
Japan centers its crypto market oversight around the Payment Services Act (PSA), which recognizes crypto as legal property and requires digital asset service providers to register with the FSA.
Crypto entities seeking to register with the FSA must meet stringent cybersecurity and AML requirements implemented by the Financial Intelligence Unit (FIU) and the Japan Financial Intelligence Center (JAFIC) and integrate counter-terrorism funding measures, such as verifying customers’ identities and reporting suspicious transactions to the FSA to operate in the country.
The FSA oversees the industry in collaboration with the Japan Virtual Currency Exchange Association (JVCEA) and the Japan Security Token Offering Association (JSTOA).
Read about OSL’s reported sale offer of its exchange in Hong Kong:
Hong Kong’s OSL Reportedly Seeks $128M Sale Amid Profit Woes
Stay updated on Sony’s acquisition of a crypto exchange in Japan:
Sony Taps Crypto Exchange Market with Amber Japan Acquisition
