Hong Kong’s OSL Group has successfully completed the acquisition of CoinBest, a Japanese crypto exchange. Following this acquisition, CoinBest has been rebranded to OSL Japan, marking a significant step in OSL’s global expansion strategy.
In a recent interview with The Block, Kevin Cui, the Chief Executive Officer of OSL Group, shared that despite Japan’s notoriously challenging market, the acquisition of CoinBest offers an exceptional entry point. He stated, “Our growth in Japan will rely heavily on our local team.”
Cui pointed out that OSL has been heavily focusing on expanding globally since last year due to the somewhat limited user base in its native Hong Kong market. “We are keen on expanding in a jurisdiction with a mature regulatory framework. Japan’s crypto regulatory climate is comparable to that of Hong Kong,” he said.
The theme of global expansion will remain central to OSL’s strategy this year, with a focus on markets that have established crypto regulations. Lithuania is one such market that OSL is currently considering. Cui believes that Lithuania would provide a suitable market for OSL to remain in compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation, which is now operational.
OSL is among the nine crypto exchanges that have secured official crypto licenses in Hong Kong, adhering to the 2023 crypto licensing regime that permits exchanges to offer retail trading services.
In the initial stages, OSL Japan will majorly focus on over-the-counter services and introduce retail products customized for the local market. According to a company statement, “OSL Japan will continue to enhance its market presence and expand its product suite, including a robust trading platform, improved custody solutions, and advisory services tailored for both institutional and retail clients in Japan.”
The Hong Kong-listed company projects its 2024 revenue to fall between HK$337 million ($43.2 million) and HK$375 million, representing a 60% to 79% year-on-year increase, per its earnings forecast.
Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures also invests in other crypto companies. Bitget, a crypto exchange, is an anchor LP for Foresight Ventures. The Block maintains its independence to deliver objective, impactful, and timely crypto industry information. Here are our current financial disclosures.
