OSL Group Makes Strategic Acquisition of CoinBest, Signaling Entry Into Japan's Flourishing Digital Asset Market

OSL's purchase of 81.38% of CoinBest shares signals a major step into Japan's growing digital asset economy.

Hong Kong-listed financial services company OSL Group has announced a major push to expand its footprint in Japan’s digital asset market with the acquisition of a controlling stake in CoinBest, a crypto exchange licensed by the country’s Financial Services Agency (FSA).

According to an announcement on November 4, the acquisition was made through the group’s wholly-owned subsidiary, OSL Japan. The company purchased 81.38% of CoinBest shares from four independent third parties, as part of a strategy to enter one of Asia’s most regulated and established crypto markets.

The move comes as Japan is preparing to fully legalize stablecoins by June 2024, following an amendment to the country’s Payment Services Act. The company said the deal presents an opportunity for the group to explore the market, given its experience in regulatory compliance, operational standards, and security practices.

“Acquiring CoinBest is a pivotal milestone for OSL. This move signifies our entry into the Japanese market, heralding a new era of global growth,” said Ivan Wong, top executive at OSL Group.

The acquisition is set to unlock business synergies between OSL and CoinBest, combining resources and enhancing operational efficiency. OSL, which recently passed the SOC2 Type 2 audit, a key industry standard for security, expects the partnership to bring new product offerings to the Japanese market while boosting trading liquidity and technology integration.

OSL, which already has a presence in countries like Hong Kong and Singapore, is known for its digital asset offerings. In January this year, its CEO Patrick Pan said the company’s 2024 plan included expanding to other markets. While its major focus remains on crypto trading, OSL also plans to push its other products, including its hot and cold wallet, to the world for broader adoption.

The company's financials are audited annually by PricewaterhouseCoopers, while the wallets are fully covered by insurance offered by Lloyds of London, Pan disclosed at the time.

Meanwhile, the past week has seen several acquisitions in the crypto market. On Friday, Crypto.com, one of the leading digital asset trading platforms, announced the purchase of Watchdog Capital, a United States-based broker-dealer registered under the country’s Securities and Exchange Commission (SEC).

Through the deal, the exchange plans to explore equities trading to compete with established giants like Charles Schwab, Fidelity Investments, and Interactive Brokers LLC. According to the announcement, Crypto.com will offer the services specially for US customers.

That same week, Coinspeaker reported that UK-based crypto exchange Archax had agreed to buy King & Shaxson Capital Markets (KSCM) for European expansion. In October, other companies, such as payment giant Stripe, Komainu, a crypto custodian, and CoinDesk, a digital asset news media, made strategic acquisitions to expand their business offerings.