On Friday, Hong Kong-listed digital assets firm OSL Group Limited announced that it has entered into a share purchase agreement to buy an 81.38% stake in CoinBest KK. CoinBest is a crypto asset trading service provider that has a license to operate from the Japan Financial Services Agency (FSA).
This strategic move will become another milestone achievement in OSL Group’s journey into the Japanese market and is also in line with their COMPANY’s globalization roadmap.
Japan’s Regulatory Framework for Digital Assets
Japan has already established a regulatory framework, and further more mature market in the digital asset landscape. Digital asset market penetration and investment volume in the country have grown at a rapid pace.
Through the acquisition of CoinBest, OSL Group’s mission is to inspire innovation across its various trading platforms including OSL Digital Securities, which boasts a licensed trading platform in Hong Kong.
The acquisition is expected to provide global trading with liquidity, allow resources to be shared, and create synergies between both companies.
This acquisition is significant, according to Wong Koon Man, Chief Investment Officer of OSL Group. “The acquisition of CoinBest is a significant step for OSL, as we officially enter the Japanese market and usher in a new phase of global growth,” he said.
“We look forward to applying the over-the-counter (OTC) trading, custody and trading expertise of OSL while also learning from the Japanese market to add depth to our competitive advantage,” Wong wrote.
Acquisition is Settled to Close By Year-End
This acquisition will be carried out through OSL Investment (Japan) Limited, a 100%-owned subsidiary of OSL Group Limited. Subject to conditions in the share purchase agreement, it is scheduled to close by the end of next year.
The expansion into Japan is a strategic opportunity for OSL Group and expansion into one of the fastest growing demands in the Asia-Pacific digital asset service markets.
Japan has a complex tax system regarding cryptocurrency, depending on the type of investor you are. For individual investors, crypto gains are designated as income or miscellaneous income and taxed at rates as high as 55%.
Since April 2024, businesses have also been given a tax break on unrealized profits from cryptocurrencies issued by third parties, which should alleviate tax burdens and likely incentivize on-the-balance-sheet crypto exposure.
As a result, this movement could create a realistic opportunity for corporations to stimulate further adoption of crypto in a controlled, tax-friendly atmosphere leading to digital finance-powered economic expansion.