Komainu, a cryptocurrency custodian supported by Nomura Holdings, is on track to complete its first acquisition, with plans to purchase Singapore-based Propine Holdings Pte Ltd. The deal is currently awaiting approval from the Monetary Authority of Singapore (MAS), as announced by the firm on Tuesday.
This acquisition will provide Komainu with a Capital Market Services license in Singapore, a critical step in expanding its operations in the region.
Komainu’s Expansion in Asia
The acquisition aligns with Komainu’s strategy to strengthen its presence in Asia, where regulatory frameworks for digital assets are becoming more established in markets like Singapore, Hong Kong, and Japan. Additionally, Komainu plans to apply for a Major Payment Institution license in Singapore, enabling the company to offer full payment services.
The firm has seen a surge of interest from private banks, hedge funds, and asset managers, particularly in Singapore, for its advisory and collateral management services.
According to Komainu’s co-Chief Executive Officer Paul Frost-Smith, “Singapore is an important strategic hub for Komainu in Asia, and Propine will enhance our capabilities in meeting the significant client demand we are experiencing, including for Komainu Connect, our collateral management service, which is already extensively utilized by our investor clients in Hong Kong, Singapore, Malaysia, Thailand, and Australia.”
Japan’s Key Role in Komainu’s Growth
Japan remains a crucial market for Komainu, primarily due to its strong ties with Nomura Holdings. Frost-Smith emphasized that Japan will play a pivotal role as the company continues to grow.
While Komainu is preparing for an upcoming funding round, Frost-Smith did not disclose the expected amount but mentioned that the process will conclude in the coming weeks.
Japan to Potentially Lower Crypto Tax Rates
Earlier this month, Japan revealed plans to revise its crypto tax code, potentially lowering it to match other financial assets. The Financial Services Agency (FSA) has proposed a reform that could reduce the tax rate on crypto profits to a flat 20%.
This change, outlined in an August 30 request for tax reform, is part of a broader fiscal review for 2025. The FSA advocates for the treatment of cryptocurrencies as traditional financial assets, making them more accessible to the public.
Japan’s crypto market is expected to grow rapidly, with daily traders projected to increase from 350,000 to 500,000 by the end of the year, according to a study by Bitget. This surge would position Japan’s market size between those of Turkey and Indonesia, and roughly two-thirds the size of South Korea’s market.
Gracy Chen, CEO of Bitget, remarked, “Japan, with its high awareness of crypto, is a dynamic and rapidly evolving landscape. The exciting possibilities and current trends make Japan a prime area for new technologies and widespread use.”
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