OSL Group Expands Into Japan with CoinBest Acquisition

Hong Kong-based OSL Group has completed its acquisition of the Japanese crypto exchange CoinBest, officially renaming it OSL Japan to facilitate global expansion.

OSL’s CEO, Kevin Cui, shared in an interview with The Block that despite Japan being a challenging market, acquiring CoinBest offers a significant opportunity for growth. He stated, “We’ll rely on the local team to grow our presence in Japan.”

Cui highlighted OSL’s focus on global expansion since last year, as Hong Kong’s market presents limitations in user base. He noted, “We’d favor expanding in a jurisdiction with a more mature regulatory framework,” likening Japan’s regulatory environment for crypto to that of Hong Kong’s.

OSL aims to continue its global expansion theme in 2023 and is currently exploring opportunities in other regulated markets, including Lithuania, which aligns with the EU’s Markets in Crypto-Assets (MiCA) regulation.

Having acquired one of the nine crypto licenses in Hong Kong under the 2023 crypto licensing regime, OSL is set to offer retail trading services.

Initially, OSL Japan will emphasize over-the-counter (OTC) services and develop retail products tailored for the Japanese market.

The company plans to broaden its market presence and product offerings, including a robust trading platform, enhanced custody solutions, and advisory services for institutional and retail clients.

According to OSL’s earnings forecast, the Hong Kong-listed firm anticipates its 2024 revenue to be between HK$337 million ($43.2 million) and HK$375 million, reflecting a year-on-year increase of 60% to 79%.